5 Nova Company's total overhead cost at various levels of activity are presented below Total Machine- Overhead 10 points Month April Ma June July Hours 50,000 218,300 40,000 191,900 60,000 244,700 70,000 271,100 Cost eBook Print Assume that the total overhead cost above consists of utilities, supervisory salaries, and maintenance. The breakdown of these costs at the 40,000 machine-hour level of activity is: References Utilities (variable) Supervisory salaries (fixed) Maintenance (mixed) Total overhead cost 60,000 67,000 64,900 $191,900 Nova Company's management wants to break down the maintenance cost into its variable and fixed cost elements. Required: 1. Estimate how much of the $271,100 of overhead cost in July was maintenance cost. (Hint:to do this, it may be helpful to first determine how much of the $271,100 consisted of utilities and supervisory salaries. Think about the behavior of variable and fixed costs.) 2. Using the high-low method, estimate a cost formula for maintenance in the form Y=a + bX 3. Express the company's total overhead cost in the form Y=a + bX. 4. What total overhead cost would you expect to be incurred at an activity level of 45,000 machine-hours