Nova Company's total overhead cost at various levels of activity are presented below:

MonthMachine-

HoursTotal

Overhead

CostApril45,000$181,950May35,000$158,250June55,000$205,650July65,000$229,350

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)$45,500Supervisory salaries (fixed)61,000Maintenance (mixed)51,750Total overhead cost$158,250

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

1. how much of the $229,350 of overhead cost in July was maintenance cost.

2. Using the high-low method, estimate a cost formula for maintenance in the formY = a + bX.

3. Express the company'stotaloverhead cost in the formY = a + bX.

4. Whattotaloverhead cost would you expect to be incurred at an activity level of 40,000 machine-hours?