Required: 1. Estimate how much of the $213,530 of overhead cost in July was maintenance cost. (Hint: to do this, it may be he determine how much of the $213,530 consisted of utilities and supervisory salaries. Think about the behavior of va costs.) 2. Using the high-low method, estimate a cost formula for maintenance in the form Y= a + bX. 3. Express the company's total overhead cost in the form Y = a + bX. 4. What total overhead cost would you expect to be incurred at an activity level of 42,000 machine-hours?

Required: 1. Estimate how much of the $213,530 of overhead cost in July was maintenance cost. (Hint: to do this, it may be he determine how much of the $213,530 consisted of utilities and supervisory salaries. Think about the behavior of va costs.) 2. Using the high-low method, estimate a cost formula for maintenance in the form Y= a + bX. 3. Express the company's total overhead cost in the form Y = a + bX. 4. What total overhead cost would you expect to be incurred at an activity level of 42,000 machine-hours?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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