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Estimate how much of the $ 2 3 3 , 7 4 0 of overhead cost in July was maintenance cost. ( Hint: to do
Estimate how much of the $ of overhead cost in July was maintenance cost. Hint: to do this, it may be helpful to fir: determine how much of the $ consisted of utilities and supervisory salaries. Think about the behavior of variable an costs.
Using the highlow method, estimate a cost formula for maintenance in the form
Express the company's total overhead cost in the form
What total overhead cost would you expect to be incurred at an activity level of machinehours?
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Estimate how much of the $ of overhead cost in July was maintenance cost. Hint: to do this, it may be helpful to first determine how much of the $ consisted of utilities and supervisory salaries. Think about the behavior of variable and fixed costs.
Note: Do not round intermediate calculations.
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Maintenance cost in July
Nova Company's total overhead cost at various levels of activity are presented below:
tableMonthMachineHours,tableTotal OverheadCostApril$
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