Crosshill Companys total overhead costs at various levels of activity are presented below:

Month	Machine-Hours	Total Overhead Cost
April	49,000	$173,870
May	39,000	$151,570
June	59,000	$196,170
July	69,000	$218,470

Assume that the overhead cost above consists of utilities, supervisory salaries, and maintenance. The breakdown of these costs at the 39,000-machine-hour level of activity in May is as follows:

Utilities (variable)	$	42,900
Supervisory salaries (fixed)		46,000
Maintenance (mixed)		62,670
Total overhead cost	$	151,570

The company wants to break down the maintenance cost into its variable and fixed cost elements.

Required:

1. Estimate how much of the $218,470 of overhead cost in July was maintenance cost. (Hint: To do this, first determine how much of the $218,470 consisted of utilities and supervisory salaries. Think about the behaviour of variable and fixed costs within the relevant range.) (Do not round intermediate calculations.)

Maintenance cost of July

2. Using the highlow method, estimate a cost formula for maintenance. (Do not round your intermediate calculations. Round the "Variable cost per unit" to 2 decimal places.)

	Machine- Hours Maintenance Cost High activity level Low activity level Change Variable cost element per MH Fixed cost element

	Y = + X

3. Express the companys total overhead cost in the form Y = a + bX. (Do not round your intermediate calculations. Round the "Variable cost per unit" to 2 decimal places.)

	Variable Cost per Machine-Hour Fixed Cost Utilities cost Supervisory salaries cost Maintenance cost Total overhead cost

4. What total overhead cost would you expect to be incurred at an activity level of 44,000 machine-hours? (Do not round intermediate calculations.)

	Total overhead cost