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

Month	Machine-Hours	Total Overhead Cost
April	53,000	$ 203,600
May	43,000	$ 180,600
June	63,000	$ 226,600
July	73,000	$ 249,600

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)	$ 47,300
Supervisory salaries (fixed)	66,000
Maintenance (mixed)	67,300
Total overhead cost	$ 180,600

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

Required:

1. Estimate how much of the $249,600 of overhead cost in July was maintenance cost. (Hint: to do this, it may be helpful to first determine how much of the $249,600 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 companys 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 48,000 machine-hours?

Nova Company's total overhead cost at various levels of activity are presented below: 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: 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 $249,600 of overhead cost in July was maintenance cost. (Hint: to do this, it may be helpful to first determine how much of the $249,600 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 48,000 machine-hours? Estimate how much of the $249,600 of overhead cost in July was maintenance cost. (Hint: to do this, it may be helpful to first determine how much of the $249,600 consisted of utilities and supervisory salaries. Think about the behavior of variable and fixed costs.) (Do not round intermediate calculations.) 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 machine hour" to 2 decimal places.) Express the company's total overhead cost in the form Y=a+bX. (Do not round your intermediate calculations. Round the 'Variable cost per machine hour" to 2 decimal places.) What total overhead cost would you expect to be incurred at an activity level of 48,000 machine-hours? (Do not round intermediate calculations.)