Reference no: EM13569109

Prince Company's total overhead costs at various levels of activity are presented below: Month Direct Labour-Hours Total Overhead Cost September 112,800 $ 781,512 October 89,200 $ 662,568 November 157,200 $ 1,005,288 December 165,000 $ 1,044,600 Assume that the overhead cost above consists of utilities, supervisory salaries, depreciation, and maintenance. The breakdown of these costs at the 89,200 machine-hour level of activity in October is as follows: Utilities (variable) $ 233,704 Supervisory salaries and depreciation 172,000 Maintenance 256,864 Total overhead cost $ 662,568 The company wants to break down the maintenance cost into its variable and fixed cost elements. Required:

1.Estimate how much of the $1,044,600 of overhead cost in December was maintenance cost. Level of Activity 89,200 MH 165,000 MH Maintenance cost $ $ 2. Using the high-low method, estimate a cost formula for maintenance.Y = $ + $ X 3. Express the company's total overhead cost in the form Y = a + bX. Y = $ + $ X 4. What total overhead cost would you expect to be incurred at an activity level of 99,200 machine-hours?Total overhead cost $.