Nova Company's total overhead cost at various levels of activity are presented below: Month April May June July Machine- Total Overhead Hours 51,000 41,000 61,000 71,000 Cost $ 218,920 $ 191,720 $ 246,120 $ 273,320 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: Utilities (variable) Supervisory salaries (fixed) Maintenance (mixed) Total overhead cost $ 61,500 63,000 67, 220 $191,720 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 $273,320 of overhead cost in July was maintenance cost. (Hint to do this, it may be helpful to first determine how much of the $273,320 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 46,000 machine-hours?

Nova Company's total overhead cost at varlous levels of activity are presented below: Assume that the total overhead cost above consists of utilities, supervisory salarles, and maintenance. The breakdown of these costs at the 41,000 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 $273,320 of overhead cost in July was maintenance cost. (Hint to do this, it may be helpful to first determine how much of the $273,320 consisted of utilities and supervisory salaries. Think about the behovior 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 46,000 machine-hours