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Nova Company's total overhead cost at various levels of activity are presented below: oints Month April May June July Machine- Hours 70.000 60,000 80.000 90.000

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Nova Company's total overhead cost at various levels of activity are presented below: oints Month April May June July Machine- Hours 70.000 60,000 80.000 90.000 Total Overhead Cost $198.000 $174.000 $ 222.000 $246,000 eBook Assume that the total overhead cost above consists of utilities, supervisory salaries, and maintenance. The breakdown of these costs at the 60,000 machine-hour level of activity is: Print " Utilities (variable) Supervisory salaries (fixed) Maintenance (mixed) Total overhead coat $ 48,000 21,000 105,000 $174,000 References 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 $246,000 of overhead cost in July was maintenance cost. (Hint: to do this, it may be helpful to first determine how much of the $246,000 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 75.000 machine-hours? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Estimate how much of the $246,000 of overhead cost in July was maintenance cost. (Hint: to do this, it may be helpful to first determine how much of the $246,000 consisted of utilities and supervisory salaries. Think about the behavior of variable and fixed costs.) (Do not round your intermediate calculations.) Maintenance cost in July Required 1 Required 2 > 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.) YE 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 plajes.) Variable Cost per Machine- Fixed Cost Hour Utilities cost Supervisory salaries cost Maintenance cost Total overhead cost Y = ( Required 2 Required 4 > 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 75,000 machine-hours? (Do not round your intermediate calculations.) Total overhead costs

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