Reference no: EM13510273

Golden Company's total overhead cost at various levels of activity are presented below:

Month	Machine-Hours	Total Overhead Cost
March	53,000	$206,910
April	43,000	$179,210
May	63,000	$234,610
June	73,000	$262,310

Assume that the overhead cost above consists of utilities, supervisory salaries, and maintenance. The breakdown of these costs at the 43,000 machine-hour level of activity is as follows:

Utilities (variable)	$	68,800
Supervisory salaries (fixed)		46,000
Maintenance (mixed)		64,410
Total overhead cost	$	179,210

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

Required:

Estimate how much of the $262,310 of overhead cost in June was maintenance cost. (Hint: To do this, it may be helpful to first determine how much of the $262,310 consisted of utilities and supervisory salaries. Think about the behavior of variable and fixed costs within the relevant range.)