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Help me please. Nova Companys total overhead cost at various levels of activity are presented below: Month Machine-Hours Total Overhead Cost April 70,000 $198,000 May

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Help me please.

Nova Companys total overhead cost at various levels of activity are presented below:

Month Machine-Hours Total Overhead Cost
April 70,000 $198,000
May 60,000 $174,000
June 80,000 $222,000
July 90,000 $246,000

Assume that the total overhead cost above consists of utilities, supervisory salaries, and maintenance. The breakdown of these costs at the 60,000 machine-hour level of activity is:

Utilities (variable) $ 48,000
Supervisory salaries (fixed) 21,000
Maintenance (mixed) 105,000
Total overhead cost $ 174,000

Nova Companys management wants to break down the maintenance cost into its variable and fixed cost elements.

1. Estimate how much of the $246,000 of overhead cost in July was maintenance cost. (Hint: to do this, it may be helpful to first determine how much of the $246,000 consisted of utilities and supervisory salaries. Think about the behavior of variable and fixed costs!) (Do not round intermediate calculations.) Maintenance cost in July 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.) MachineMaintenance Hours Cost High activity level Low activity level Change 0 $ Variable cost element per MH Fixed cost element

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