Assume that the total overhead cost above consists of utilities, supervisory salaries, and maintenance. The breakdown of these costs at the 39,000 machine-hour level of activity is:

Nova Company's total overhead cost at various levels of activity are presented below: Month Machine-Hours Total Overhead Cost April 49,000 $201 ,160 May 39,000 $176,760 June 59,000 $225,560 July 69,000 $249,960 Assume that the total overhead cost above consists of utilities, supervisory salaries, and maintenance. The breakdown of these costs at the 39,000 machine-hour level of activity is: Utilities (variable) $ 50,700 Supervisory salaries (xed) 67,000 Maintenance (mixed) 59,060 Total overhead cost $176,760 Nova Company's management wants to break down the maintenance cost into its variable and xed cost elements. Required: 1. Estimate how much of the $249,960 of overhead cost in July was maintenance cost. (Hint: To do this, it may be helpful to rst determine how much of the $249,960 consisted of utilities and supervisory salaries. Think about the behavior of variable and xed costs!) (Do not round intermediate calculations.) _:| 2- Using the high-low method, estimate a cost formula for maintenance. (Do not round your intermediate calculations. Round the "Variable cost per unit" to 2 decimal places.) -::-: CE 3. Express the company's totai overhead cost in the linear equation form Y = a + bX. (Do not round your intermediate calculations. Round the "Variable cost per unit" to 2 decimal places.) Utilities cost Supervisory salaries cost Total overhead cost $ . 4. What total overhead cost would you expect to be incurred at an activity level of 44,000 machine-hours? (Do not round intermediate calculations.) :|