Nova Company's total overhead cost at various levels of activity are presented below: Total Machine Overhead Month Hours Cost Apri 48,000 $195,360 May 38,000 $170,660 June 58,000 $220,060 68,000 $244,760 Assume that the total overhead cost above consists of utilities, supervisory salaries, and maintenance. The breakdown of these costs at the 38,000 machine-hour level of activity is: Utilities (variable) Supervisory salaries (fixed) Maintenance (mixed) Total overhead cost $ 53,200 60,000 57,460 S 170,660 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 $244,760 of overhead cost in July was maintenance cost. (Hint: To do this, it may be helpful to first determine how much of the $244,760 consisted of utilities and supervisory salaries. Think about the behavior of variable and fixed costs!) (Do not round intermediate calculations.) Answer is complete and correct. S89,560 2. Using the high-low method, estimate a cost formula for maintenance. (Do not round your intermediate calculations. Round the "Variable cost per machine-hours" to 2 decimal places.) Answer is complete but not entirely correct. Machine- Hours Maintenance Cost High activity level Low activity level Change 68,000 244,760 38000170,680 30,000 S 74,100 Variable cost element Fixed cost element $2.47per MH 76,800