Prince Company’s total overhead costs at various levels of activity are presented below: MonthMachine HoursTotalOverheadCost September113,000$750,650 October85,000$612,050 November156,000$963,500 December162,600$996,170Assume that the overhead cost above consists of utilities, supervisory salaries, depreciation, and maintenance. The breakdown of these costs at the 85,000-machine-hour level of activity in October is as follows: Utilities (variable)$221,000 Supervisory salaries and depreciation (fixed)149,000 Maintenance (mixed) 242,050 Total overhead cost$612,050 The company wants to break down the maintenance cost into its variable and fixed cost elements.Required:1.Estimate how much of the $996,170 of overhead cost in December was maintenance cost. (Hint: To do this, first determine how much of the $996,170 consisted of utilities and supervisory salaries. Think about the behaviour of variable and fixed costs within the relevant range.) (Do not round intermediate calculations.)
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