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# ABC Company's total overhead costs at various levels of activity are presented below:

ABC Company's total overhead costs at various levels of activity are presented below:
March 60,000 \$216,800
April 50,000 \$194,000
May 70,000 \$239,600
June 80,000 \$262,400
Assume that the overhead costs above consist of utilities, supervisory salaries, and maintenance. At the 50,000 machine-hour level of activity these costs are:
Utilities (V)        \$  54,000
Supervisory salaries (F)     62,000
Maintenance (M)        78,000
V = Variable; F = Fixed; M = Mixed
The company wants to break down the maintenance cost into its basic variable and fixed cost elements.
Required:
a. Estimate the maintenance cost for June.
b. Use the high-low method to estimate the cost formula for maintenance cost.
c. Estimate the TOTAL overhead cost at an activity level of 55,000 machine hours.  (Note that Part C is asking about total overhead cost and not just maintenance cost)

Questions:ABC Company's total overhead costs at various levels of activity are presented below:
March
60,000
\$216,800
April
50,000
\$194,000
May
70,000
\$239,600...

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