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

Month	Machine-Hours	Total Overhead Cost
April	52,000	$209,020
May	42,000	$181,420
June	62,000	$236,620
July	72,000	$264,220

Assume that the total overhead cost above consists of utilities, supervisory salaries, and maintenance. The breakdown of these costs at the 42,000 machine-hour level of activity is:

Utilities (variable)	$	67,200
Supervisory salaries (fixed)		51,000
Maintenance (mixed)		63,220
Total overhead cost	$	181,420

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

Required:

2.

Using the high-low method, estimate a cost formula for maintenance. (Do not round your intermediate calculations. Round the "Variable cost per unit" to 2 decimal places.)

	Variable Cost per
	Machine-Hour	Fixed Cost
Utilities cost
Supervisory salaries cost
Maintenance cost
Total overhead cost

Y =

+

X

Y = ______ + ______ X