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Nova Company's total overhead costs at various levels of activity follow: Machine- Total Overhead Month Hours Costs April $ 206,000 May 74,000 107,500 278,000 88,000 230,000 June July 98,000 246,960 Assume that the total overhead costs consist of utilities, supervisory salaries, and maintenance. The breakdown of these costs at the 68,000 machine-hour level of activity is as follows: Utilities (V) Supervisory salaries (F) Maintenance (M) $ 48,960 21,800 135,240 $206,000 Total averhead costs V = variable; F=fixed; M = mixed. Nova Company's management wants to break the maintenance cost down into its basic variable and fixed cost elements. Required: 1. As shown, overhead costs in May amolated to $278,000. Determine how much of this consisted of maintenance cost. (Hint To do this, it may be helpful to first determine how much of the $278.000 consisted of utilities and supervisory salaries Think about the behaviour of variable and fixed costs!) (Do not round intermediate calculations. Round your answers to the nearest whole dollar amount.) Required: 1. As shown, overhead costs in May amounted to $278,000. Determine how much of this consisted of maintenance cost. (Hint To do this, it may be helpful to first determine how much of the $278,000 consisted of utilities and supervisory salaries. Think about the behaviour of variable and fixed costs!) (Do not round intermediate calculations. Round your answers to the nearest whole dollar amount.) Maintenance cost 2. By means of the high-low method, estimate a cost formula for maintenance (Do not round intermediate calculations. Round "Fixed cost" answer to the nearest whole dollar and "Variable cost" answer to 2 decimal places.) X 3. Express the company's total overhead costs in the linear equation form Ya+DX. (Do not round Intermediate calculations. Round "Fixed cost" answer to the nearest whole dollar and "Variable cost" answer to 2 decimal places.) YA 3. Express the company's total overhead costs in the linear equation form Ya+bX. (Do not round intermediate calculations. Round "Fixed cost" answer to the nearest whole dollar and "Variable cost" answer to 2 decimal places.) 4. What total overhead costs would you expect to be incurred at an operating activity level of 68,000 machine-hours? At an operating activity level of 83,000 machine-hours? (Do not round intermediate calculations, Round your answers to the nearest whole dollar amount.) Total Overhead Cost 68,000 machine-hours 83,000 machine-hours 014 11 Next >