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Nova Company's total overhead cost at various levels of activity are presented below: Month April May June July Machine Hours 48, eee 38,00 58,000 68,000

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Nova Company's total overhead cost at various levels of activity are presented below: Month April May June July Machine Hours 48, eee 38,00 58,000 68,000 Total Overhead Cost $ 172,420 $ 154,520 $ 200,320 $ 223, 220 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) Supervisory salaries (fixed) Maintenance (mixed) Total overhead cost $ 45,600 53,000 55,920 $154,52e Novo Company's management wants to break down the maintenance cost into its variable and fixed cost elements Required: 1. Estimate how much of the $223,220 of overhead cost in July was maintenance cost. (Hint to do this, it may be helpful to first determine how much of the $223,220 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=o+bX 4. What total overhead cost would you expect to be incurred at an activity level of 43,000 machine-hours? Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Estimate how much of the $223,220 of overhead cost in July was maintenance cost. (Hint: to do this, it may be helpful to first determine how much of the $223,220 consisted of utilities and supervisory salaries. Think about the behavior of variable and fixed costs.) (Do not round intermediate calculations.) Maintenance cost in July 08.620 Rennes Required 2 > Nova Company's total overhead cost at various levels of activity are presented below: Month April May June July Machine - Hours 48,00 38,000 58,000 68,000 Total Overhead Cost $ 177,420 $ 154,52e $ 200, 320 $ 223, 220 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) Supervisory salaries (fixed) Maintenance (mixed) Total overhead cost $ 45,600 53,000 55,920 $154,520 Nova Company's management wants to break down the maintenance cost into its variable and fixed cost elements. Required: 1. Estimate how much of the $223,220 of overhead cost in July was maintenance cost. (Hint: to do this, it may be helpful to first determine how much of the $223,220 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=9+ 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? Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Using the high-low 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.) 9,967 $ 1.16 at the 38,000 machine hour level of activity is: Utilities (variable) Supervisory salaries (fixed) Maintenance (mixed) Total overhead cost $ 45,600 53,000 55,920 $154,52e Nova Company's management wants to break down the maintenance cost into its variable and fixed cost elements, Required: 1. Estimate how much of the $223,220 of overhead cost in July was maintenance cost. (Hint: to do this, it may be helpful to first determine how much of the $223,220 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? Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 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.) Variable Cost per Machine Hour Fixed Cost Utilities cost Supervisory salarios cost Maintenance cost Total overhead cost 45,000.00 0 0.00 $ 53,000 45,853.00 3 9,967 $ $ 62,967 90.853 00 $ 62,967 2.36 TUVALUHY S LUCI UVEDU LUST AL Valuus Tevens UI OLLVILY are presente verw. Month April May June July Machine Hours 48,000 38,000 58,000 68,000 Total Overhead Cost $ 177,420 $ 154,520 $ 200,320 $ 223, 220 Assume that the total overhead cost above consists of utilities, supervisory salarles, and maintenance. The breakdown of these costs at the 38,000 machine-hour level of activity is: Utilities (variable) Supervisory salaries (fixed) Maintenance (mixed) Total overhead cost $ 45,600 53,000 55,920 $154,520 Nova Company's management wants to break down the maintenance cost into its variable and fixed cost elements. Required: 1. Estimate how much of the $223,220 of overhead cost in July was maintenance cost (Hint to do this, it may be helpful to first determine how much of the $223,220 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? Answer is complete but not entirely correct Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 What total overhead cost would you expect to be incurred at an activity level of 43,000 machine-hours? (Do not round intermediate calculations) Total overhead cost 164 4473

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