shobhaben Problem 3-15 High-Low Method; Predicting Cost [LO1, LO2]Crosshill Company's total overhead costs at various levels of activity are presented below:MonthAprilMayJuneJulyMachine-Hours70,00060,00080,00090,000Utilities (variable)Supervisory salaries (fixed)Maintenance (mixed)Total overhead costAssume that the overhead cost above consists of utilities, supervisory salaries, and maintenance. The breakdown of these costs60,000-machine-hour level of activity in May is as follows:Total OverheadCost$202,000$180,000$224,000$246,000Maintenance cost in JulyThe company wants to break down the maintenance cost into its variable and fixed cost elements.h$ 49,80021,000109, 200$180,000Required:1. Estimate how much of the $246,000 of overhead cost in July was maintenance cost. (Hint: To do this, first determine how muthe $246,000 consisted of utilities and supervisory salaries. Think about the behaviour of variable and fixed costs within the relrange.) (Round the "Variable cost per unit" to 2 decimal places.)

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Description: shobhaben Problem 3-15 High-Low Method; Predicting Cost [LO1, LO2]Crosshill Company's total overhead costs at various levels of activity are presented below:MonthAprilMayJuneJulyMachine-Hours70,00060,00080,00090,000Utilities (variable)Supervisory sal

The costs incurred for the production are classified as fixed and variable costs. The fixed costs…

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Crosshill Company's total overhead costs at various levels of activity are presented below: Total Overhead Cost $202,000 $180,000 $224,000 $246,000 Month April May June July Machine-Hours 70,000 60,000 80,000 90,000 Assume that the overhead cost above consists of utilities, supervisory salaries, and maintenance. The breakdown of these c 60,000-machine-hour level of activity in May is as follows: Utilities (variable) Supervisory salaries (fixed) Maintenance (mixed) Total overhead cost Maintenance cost in July $ 49,800 21,000 109, 200 $180,000 The company wants to break down the maintenance cost into its variable and fixed co elements. Required: 1. Estimate how much of the $246,000 of overhead cost in July was maintenance cost. (Hint: To do this, first determine how the $246,000 consisted of utilities and supervisory salaries. Think about the behaviour of variable and fixed costs within the range.) (Round the "Variable cost per unit" to 2 decimal places.)

Crosshill Company's total overhead costs at various levels of activity are presented below: Total Overhead Cost $202,000 $180,000 $224,000 $246,000 Month April May June July Machine-Hours 70,000 60,000 80,000 90,000 Assume that the overhead cost above consists of utilities, supervisory salaries, and maintenance. The breakdown of these c 60,000-machine-hour level of activity in May is as follows: Utilities (variable) Supervisory salaries (fixed) Maintenance (mixed) Total overhead cost Maintenance cost in July $ 49,800 21,000 109, 200 $180,000 The company wants to break down the maintenance cost into its variable and fixed co elements. Required: 1. Estimate how much of the $246,000 of overhead cost in July was maintenance cost. (Hint: To do this, first determine how the $246,000 consisted of utilities and supervisory salaries. Think about the behaviour of variable and fixed costs within the range.) (Round the "Variable cost per unit" to 2 decimal places.)

Principles of Cost Accounting

17th Edition

ISBN:9781305087408

Author:Edward J. Vanderbeck, Maria R. Mitchell

Publisher:Edward J. Vanderbeck, Maria R. Mitchell

Chapter4: Accounting For Factory Overhead

Section: Chapter Questions

Problem 1P: The cost behavior patterns below are lettered A through H. The vertical axes of the graphs represent...

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