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

Month	Machine-Hours	Total Overhead Cost
April	48,000	$178,140
May	38,000	$154,840
June	58,000	$201,440
July	68,000	$224,740

Assume that the total overhead cost above consists of utilities, supervisory salaries, and maintenance. The breakdown of these costs at the 38,000 machine-hour level of activity is:

Utilities (variable)	$	41,800
Supervisory salaries (fixed)		47,000
Maintenance (mixed)		66,040
Total overhead cost	$	154,840

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

Required:

1.

Estimate how much of the $224,740 of overhead cost in July was maintenance cost. (Hint: To do this, it may be helpful to first determine how much of the $224,740 consisted of utilities and supervisory salaries. Think about the behavior of variable and fixed costs!) (Do not round intermediate calculations.) maintanance 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 68,000 S 224,740 38,000 30,000 S 69,900 154,840 Variable cost elementS 2.33 per MH Fixed cost element 55 S 2.33 3. Express the company's total overhead cost in the linear equation form Y= a + bX. (Do not ro intermediate calculations. Round the "Variable cost per unit" to 2 decimal places.) Variable Cost per Machine-Hour Fixed Cost Utilities cost Supervisory salaries cost Maintenance cost Total overhead cost 0.00 S 0