Golden Company's total overhead cost at various levels of activity are below:
March......(machine hours) 50,000 (total overhead costs) $194,000
April.... (machine hours) 40,000 (total overhead) $170,200
May....(mach hours) 60,000 (total overhead) $217,800
June.... (mh) 70,000 (total overhead) $241,600
Assume that overhead cost above consists of utilities, supervisory salaries, and maintenance. the breakdown of theses costs at the 40,000 machine-hour level of acitivity is as follows: Utilities(variable)..$52,000, supervisory salary...(fixed)...$60,000, Maintenance (mixed)...$58,200, total costs...$170,200. The company wants to break down the maintenance cost into its variable and fixed cost elements. 1.) estimate how much of the $241,600 of overhead cost in June was maintenance cost. 2.) using the high low method, estimate a cost formula for maintenance. 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 45,000 machine hours.
Could you please show how to determine the answers you give.