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Nova Company's total .......: Nova Company's total overhead cost at various levels of activity are presented below Month Machine-Hours Total Overhead Cost April May June
Nova Company's total .......:
Nova Company's total overhead cost at various levels of activity are presented below Month Machine-Hours Total Overhead Cost April May June 50,000 40,000 60,000 70,000 $221,100 $193,200 $249,000 $276,900 Assume that the total overhead cost above consists of utilities, supervisory salaries, and maintenance. The breakdown of these costs at the 40,000 machine-hour level of activity is Utilities (variable) Supervisory salaries (fixed) Maintenance (mixed) S 64,000 67,000 62,200 Total overhead cost $193,200 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 $276,900 of overhead cost in July was maintenance cost. (Hint: To do this, it may be helpful to first determine how much of the $276,900 consisted of utilities and supervisory salaries. Think about the behavior of variable and fixed costs!) (Do not round intermediate calculations.) Answer is complete and correct. intenance cost in 97,900Step by Step Solution
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