Nova Company's total overhead cost at various levels of activity are presented below. Month April May June July Machine Hours 53,000 43,000 63,000 73,000 Total Overhead Cost $ 208,740 $ 182,940 $ 234,540 $ 260,140 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) Supervisory Salaries (fixed) Maintenance (mixed) Total overhead cost $ 64,500 56,000 62,440 $ 102,040 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 $260,340 of overhead costin July was maintenance cost. (Hive to do this, it may be helpful to first determine how much of the $260,340 consisted of utilities and supervisory salaries. Think about the behavior of varioble and fixed costs) 2. Using the high-low method, estimate a cost formula for maintenance in the form Ya+ox 3. Express the company's total overhead cost in the form Y-abx 4 What total overhead cost would you expect to be incurred at an activity level of 48,000 machine hours? Complete this question by entering your answers in the tabs below. Required Required Required Required Total overhead cost 182940 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 $260 340 of overhead cost in July was maintenance cost. (Hint to do this, it may be helpful to first determine how much of the $260,340 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 Ya DX 3 Express the company's toral overhead cost in the form Y-a ox 4. What total overhead cost would you expect to be incurred at an activity level of 48.000 machine hours Complete this question by enteria your answers in the tabs below. Required 1 Required 2 Required Required Estimate how much of the $260,840 of overhead cost in July was maintenance cost. (Hint: to do this, it may be helpful torst determine how much of the $260.340 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 2 > References Required 1 Required by Required Required 4 Using the high-low method, estimate a cost formula for maintenance in the form Ybx. Do not found your intermediate calculations. Round the variable cost per unit to 2 decimal places 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.) Vanable Cost per Machine hour Fixed Cost Utilities cost Supervisory Salaries Cost Maintenance cost Total overhead cost Required 1 Required 2 Required 3 Required 4 What total overhead cost would you expect to be incurred at an activity level of 48,000 machine-hours? (Do not round intermediate calculations.) Total overhead cost
