Here is the excel solution. You can go through it and tell me if you have any questions
The Pate Company reported the following:
Indicate whether each of the costs above is
probably a variable, mixed or fixed cost.
Cost B :
ABC Company's total overhead costs at various levels of activity are presented below:
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:
Supervisory salaries (F)
Total overhead cost
V= Variable, F= Fixed, M= Mixed.
The company wants to break down the maintenance cost into its basic variable and
fixed cost elements.
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 ...