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Nova Company's total overhead cost at various levels of activity are presented below Month Machine-Hours Total Overhead Cost April May June 46,000 36,000 56,000 66,000
Nova Company's total overhead cost at various levels of activity are presented below Month Machine-Hours Total Overhead Cost April May June 46,000 36,000 56,000 66,000 $191,380 $164,580 $218,180 $244,980 Assume that the total overhead cost above breakdown of these costs at the 36,000 machine-hour level of activity is consists of utilities, supervisory salaries, and maintenance. The Utilities (variable) Supervisory salaries (fixed) Maintenance (mixed) 57,600 53,000 53,980 Total overhead cost $164,580 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 $244,980 of overhead cost in July was maintenance cost. (Hint: To do this, it may be helpful to first determine how much of the $244,980 consisted of utilities and supervisory salaries. Think about the behavior of variable and fixed costs!) (Do not round intermediate calculations.) aintenance cost in Jul
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