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

Month	Machine-Hours	Total Overhead Cost
April	45,000	$161,550
May	35,000	$139,650
June	55,000	$183,450
July	65,000	$205,350

Assume that the total overhead cost above consists of utilities, supervisory salaries, and maintenance. The breakdown of these costs at the 35,000 machine-hour level of activity is:

Utilities (variable)	$	38,500
Supervisory salaries (fixed)		48,000
Maintenance (mixed)		53,150
Total overhead cost	$	139,650

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

Required:

1.	Estimate how much of the $205,350 of overhead cost in July was maintenance cost. (Hint:To do this, it may be helpful to first determine how much of the $205,350 consisted of utilities and supervisory salaries. Think about the behavior of variable and fixed costs!)(Do not round intermediate calculations.)

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.)

3.	Express the companystotaloverhead cost in the linear equation formY = a + bX.(Do not round your intermediate calculations. Round the "Variable cost per unit" to 2 decimal places.)

4.	Whattotaloverhead cost would you expect to be incurred at an activity level of 40,000 machine-hours?(Do not round intermediate calculations.)