Nova Company's total overhead cost at various levels of activity are presented Machine-Overhead Apeil 51,000 218,900 41,000 191.900 61,000 245,900 71,000 $272,900 July he total overhead cost above consists of utilities, supervisory salaries, and maintenance. The breakdown of these cost e at the 41,000 machine-hour level of activity is: Otilitles (varlable) Supervisory salaries (tixed) Maistenance (mixed) Total ovethead oost 65,600 69,000 Nova Company's management wants to break down the maintenance cost into its variable and fixed cost elements 1. Estimate how much of the $272,900 of overhead cost in July was maintenance cost (Hint to do this, it may be helpful to first consisted of utilities and supervisory salarles. 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 Ya . 4.What total overhead cost would you expect to be incurred at an activity level of 46.000 machine-hours? Prev 162 Next > 5 6 8