Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Nova Company's total overhead cost at various levels of activity are presented below: Month April Machine- Hours 47,000 37,000 57,000 67,000 Total Overhead Cost $

image text in transcribed

image text in transcribed

image text in transcribed

image text in transcribed

image text in transcribed

Nova Company's total overhead cost at various levels of activity are presented below: Month April Machine- Hours 47,000 37,000 57,000 67,000 Total Overhead Cost $ 197,610 $ 173,310 $ 221,910 $ 246,210 May June July 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 cost $ 44,400 65,000 63,910 $173,310 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 $246,210 of overhead cost in July was maintenance cost. (Hint: to do this, it may be helpful to first Hataminahamiah fthanne 19 anoninted af.tilities and around. Olsun Thanhatthal-Rinhl. And 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 salaries cost Maintenance cost Total overhead cost Y = X

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Inventory Best Practices

Authors: Steven M. Bragg

2nd Edition

1118000749, 9781118000748

More Books

Students also viewed these Accounting questions