Crosshill Company's total overhead costs at various levels of activity are presented below: 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 costs at the 60,000-machine-hour level of activity in May is as follows: Utilities (variable) Supervisory salaries (fixed) Maintenance (mixed) Total overhead cost Total Overhead Cost $200,200 $177,300 $223,100 $246,000 $ 48,000 21,000 108,300 $177,300 The company wants to break down the maintenance cost into its variable and fixed cost elements. Maintenance cost in July Required: 1. Estimate how much of the $246,000 of overhead cost in July was maintenance cost. (Hint: To do this, first Determine how much of the $246,000 consisted of utilities and supervisory salaries. Think about the behaviour of variable and fixed costs within the relevant 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: 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 costs at the 60,000-machine-hour level of activity in May is as follows: Utilities (variable) Supervisory salaries (fixed) Maintenance (mixed) Total overhead cost Total Overhead Cost $200,200 $177,300 $223,100 $246,000 $ 48,000 21,000 108,300 $177,300 The company wants to break down the maintenance cost into its variable and fixed cost elements. Maintenance cost in July Required: 1. Estimate how much of the $246,000 of overhead cost in July was maintenance cost. (Hint: To do this, first Determine how much of the $246,000 consisted of utilities and supervisory salaries. Think about the behaviour of variable and fixed costs within the relevant range.) (Round the "Variable cost per unit" to 2 decimal places.)
Chapter5: Process Costing
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![Crosshill Company's total overhead costs at various levels of activity are presented below:
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 costs at the
60,000-machine-hour level of activity in May is as follows:
Utilities (variable)
Supervisory salaries (fixed)
Maintenance (mixed)
Total overhead cost
Total Overhead
Cost
$200,200
$177,300
$223,100
$246,000
$ 48,000
21,000
108,300
$177,300
The company wants to break down the maintenance cost into its variable and fixed cost elements.
Maintenance cost in July
Required:
1. Estimate how much of the $246,000 of overhead cost in July was maintenance cost. (Hint: To do this, first betermine how much of
the $246,000 consisted of utilities and supervisory salaries. Think about the behaviour of variable and fixed costs within the relevant
range.) (Round the "Variable cost per unit" to 2 decimal places.)](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Ff6289e48-e851-4db0-80f7-2678a1a4c339%2F92332d71-05ad-4be0-9f94-8f222298407a%2Ffbmu9kr_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Crosshill Company's total overhead costs at various levels of activity are presented below:
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 costs at the
60,000-machine-hour level of activity in May is as follows:
Utilities (variable)
Supervisory salaries (fixed)
Maintenance (mixed)
Total overhead cost
Total Overhead
Cost
$200,200
$177,300
$223,100
$246,000
$ 48,000
21,000
108,300
$177,300
The company wants to break down the maintenance cost into its variable and fixed cost elements.
Maintenance cost in July
Required:
1. Estimate how much of the $246,000 of overhead cost in July was maintenance cost. (Hint: To do this, first betermine how much of
the $246,000 consisted of utilities and supervisory salaries. Think about the behaviour of variable and fixed costs within the relevant
range.) (Round the "Variable cost per unit" to 2 decimal places.)
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