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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 47,000 37,000 57,000 67,000 Total

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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 47,000 37,000 57,000 67,000 Total Overhead Cost $ 194,300 $ 166,300 $ 222,300 $ 250,300 Assume that the total overhead cost above consists of utilities, supervisory salaries, and maintenance. The breakdown of these costs at the 37,000 machine-hour level of activity is: Utilities (variable) Supervisory salaries (fixed) Maintenance (mixed) Total overhead cont $ 59,200 45,000 62, 100 $166,300 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 $250,300 of overhead cost in July was maintenance cost. (Hint:to do this, it may be helpful to first determine how much of the $250,300 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 42,000 machine-hours? Required 1 Required 2 Required 3 Required 4 Estimate how much of the $250, 300 of overhead cost in July was maintenance cost. (Hint: to do this, it may be helpful to first determine how much of the $250, 300 consisted of utilities and supervisory salaries. Think about the behavior of variable and fixed costs.) (Do not round intermediate calculations.) Maintenance cost in July Required Required 2 > Complete this question by entering your answers in the tabs below. Required 1 Required2 Required 3 Required 4 Required 2 Using the high-low methoo, estimate a cost formula for maintenance in the form Y = 3 + DX. (Do not round your intermediate calculations. Round the variable cost per unit" to 2 decimal places.) $ 2.80 x question by entering your answers in the tabs below. Required 1 Required 2 Reqdired 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 salaries cost Maintenance cost Total overhead cost 0.00 $ 0 X Y = Required 1 Required 2 Required 3 Required 4 What total overhead cost would you expect to be incurred at an activity level of 42,000 machine-hours? (Do not round intermediate calculations.) Total overhead cost RE

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