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Just need help with 3 & 4 Problem 5A-8 (Algo) High-Low Method; Predicting Cost (L05-10) Nova Company's total overhead cost at various levels of activity
Just need help with 3 & 4
Problem 5A-8 (Algo) High-Low Method; Predicting Cost (L05-10) Nova Company's total overhead cost at various levels of activity are presented below. Month April June July Machine- Tour 49,000 3.000 59,000 69,000 Total Overhead Cost $ 192,590 5 166.490 $ 210,690 1 244,790 Assume that the total overhead cost above consists of utilities, supervisory stories, and maintenance. The breakdown of these costs at the 39,000 machine-hour level of activity is: Ulte variable) Supervisory write Maintenance (mixed Total overhead coat $ 58,00 49.000 2010 5166,90 Nova Company's management wants to break down the maintenance cost into les variable and fixed cost elements. Required: 1. Estimate how much of the $244790 of overhead cost in July was maintenance cost (Hinc to do this, it may be helpful to first determine how much or Required: 1. Estimate how much of the $244,790 of overhead cost in July was maintenance cost. (Hint: to do this, it may be helpful to first determine how much of the $244790 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 Ya+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 44,000 machine-hours? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 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.) Total overhead cost
Just need help with 3 & 4
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