Nova Companys total overhead cost at various levels of activity are presented below:

Month	Machine- Hours			Total Overhead Cost
April		53,000		$	199,100
May		43,000		$	174,100
June		63,000		$	224,100
July		73,000		$	249,100

Assume that the total overhead cost above consists of utilities, supervisory salaries, and maintenance. The breakdown of these costs at the 43,000 machine-hour level of activity is:

Utilities (variable)	$	55,900
Supervisory salaries (fixed)		50,000
Maintenance (mixed)		68,200
Total overhead cost	$	174,100

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

Required:

1. Express the companys total overhead cost in the form Y = a + bX?

Variable Cost per Machine hour Fixed cost

Utilities cost ? ?

Supervisory salaries cost ? ?

Maintenance cost ? ?

Total overhead cost ? ?

2. What total overhead cost would you expect to be incurred at an activity level of 48,000 machine-hours?