Nova Company$$s total overhead cost at various levels of activity are presented below:

Month Machine$-$Hours Total Overhead Cost

April $47,000$ $ $186,490$

May $37,000$ $ $159,790$

June $57,000$ $ $213,190$

July $67,000$ $ $239,890$

Assume that the total overhead cost above consists of utilities, supervisory salaries, and maintenance. The breakdown of these costs at the $37,000$ machine$-$hour level of activity is:

Utilities $($variable$)$ $ $55,500$

Supervisory salaries $($fixed$)47,000$

Maintenance $($mixed$)57,290$

Total overhead cost $ $159,790$

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

Required:

$1.$ Estimate how much of the $$239,890$ of overhead cost in July was maintenance cost. $($Hint: to do this, it may be helpful to first determine how much of the $$239,890$ 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 Y $=$ a $+$ 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 $42,000$ machine$-$hours?Nova Company's total overhead cost at various levels of activity are presented below:

Assume that the total overhead cost above consists of utilities, supervisory salaries, and maintenance. The breakdown of these costs

at the $37,000$ machine$-$hour level of activity is:

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

Required:

Estimate how much of the $$239,890$ of overhead cost in July was maintenance cost. $($Hint: to do this, it may be helpful to first

determine how much of the $$239,890$ consisted of utilities and supervisory salaries. Think about the behavior of variable and fixed

costs.$)$

Using the high$-$low method, estimate a cost formula for maintenance in the form $Y=a+bx.$

Express the company's total overhead cost in the form $Y=a+bx.$

What total overhead cost would you expect to be incurred at an activity level of $42,000$ machine$-$hours?