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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 51,000 41,000 61,000 71,000 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 51,000 41,000 61,000 71,000 Total Overhead Cost $ 191,890 $ 166,990 $ 216,790 $ 241,690 Assume that the total overhead cost above consists of utilities, supervisory salaries, and maintenance. The breakdown of these costs at the 41,000 machine-hour level of activity is: $ 53,300 47,000 Utilities (variable) Supervisory salaries (fixed) Maintenance (mixed) Total overhead cost $166,990 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 $241,690 of overhead cost in July was maintenance cost. (Hint to do this, it may be helpful to first determine how much of the $241,690 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+bX. 3. Express the company's total overhead cost in the form Ya+bX 4. What total overhead cost would you expect to be incurred at an activity level of 46,000 machine-hours? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Required 1 Requirede Required 3 Required 4 Estimate how much of the $241,690 of overhead cost in July was maintenance cost. (Hint: to do this, it may be helpful to first determine how much of the $241,690 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 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.) 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.) Fixed Cost Variable Cost per Machine- Hour 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 46,000 machine-hours? (Do not round intermediate calculations.) Total overhead cost

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