Nova Company's total overhead cost at various levels of activity are presented below: Total Machine Overhead Month Hours Cost April 48,000 $ 209,660 May 38,000 $ 183,460 June 58,000 $ 235,860 July 68,000 $ 262,060 Assume that the total overhead cost above consists of utilities, supervisory salaries, and maintenance. The breakdown of these costs at the 38,000 machinehour level of activity is: Utilities (variable) $ 57,000 Supervisory salaries (fixed) 69 , 000 Maintenance (mixed) 57 , 4 60 Total overhead cost $183.460 Nova Company's management wants to break down the maintenance cost into its variable and fixed cost elements. Required: 1. Estimate how much ofthe $262,060 of overhead cost in July was maintenance cost. (Hint: to do this, it may be helpful to rst determine how much of the $262,060 consisted of utilities and supervisory salaries. Think about the behavior of variable and fixed coststl 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) $ 57,000 Supervisory salaries (fixed) 69,000 Maintenance (mixed) 57,460 Total overhead cost $133r460 Nova Company's management wants to break down the maintenance cost into its variable and fixed cost elements. Required: 1. Estimate how much ofthe $262,060 of overhead cost in July was maintenance cost. (Hint: to do this, it may be helpful to rst determine how much of the $262,060 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 43,000 machine-hours? Required 1 Required 2 Required 3 Required 4 Estimate how much of the $262,060 of overhead cost in July was maintenance cost. (Hint: to do this, it may be helpful to first determine how much of the $262,060 consisted of utilities and supervisory salaries. Think about the behavior of variable and fixed costs.) (Do not round intermediate calculations.) Maintenance cost in JulyUsing the high-Iow method, estimate a cost formula for maintenance in the form Y = a + bX. (Do not round your intermediate calculations. Round the "Variable cost per unit\" to 2 decimal places.) -:-:- J U U_ ______________________ U I Express the company's total overhead cost in the form Y = a + bX. (Do not round your intermediate calculations. Round the "Variable cost per unit" to 2 decimal places.) Utilities cost Supervisory salaries cost Maintenance cost Total overhead cost What total overhead cost would you expect to be incurred at an activity level of 43,000 machine-hours? (Do not round intermediate calculations.) _:|