Nova Company's total overhead costs at various levels of activily follow: Assume that the total overhesd costs consist of utilities, supervisory salaries, and maintenance. The breakdown of these costs at the 68.000 machine-hour level of activity is as follows: V= variabie: F= foced: M= mixed Nova Company's management wants to break the maintenance cost down into lts basic variable and foxed cost elements Required: 1. As shown, overhead costs in May amounted to $278,000. Determine how much of this consisted of maintenance cost. (Hint lo do this. it may be helpful to first determine how much of the $278.000 consisted of utitles and supervisory salaries, Think about the behaviour of variable and fised costsp) (Do not round intermediote colculations. Round your answers to the nearest whole dellar. amount.) 2. By meams of the high-low method, estimate a cost formula for maintenance. (Do not reund intermedilate taiculations, Rotine "Fixed cost" onswer to the nearest whole dellor and "Voriable cost" answer to 2 decintal ploces.l 3. Express the company's tofaloverhead costs in the linear equation form Y=a+bX. (Do not round intermedime caleulations, Aound "Fixed cost" answer to the nearest whole doliar and "Variable cost" answer to 2 decimal places.) 4. What fotal overhead costs mould you expect to be incurred at an operating actwity level of 68,000 machine hours? As an operueng actlvily level of 83,000 machine hours? (Do not round intemediate celculations, Round your answers to the nearest whole dollar amount.) Nova Company's total overhead costs at various levels of activily follow: Assume that the total overhesd costs consist of utilities, supervisory salaries, and maintenance. The breakdown of these costs at the 68.000 machine-hour level of activity is as follows: V= variabie: F= foced: M= mixed Nova Company's management wants to break the maintenance cost down into lts basic variable and foxed cost elements Required: 1. As shown, overhead costs in May amounted to $278,000. Determine how much of this consisted of maintenance cost. (Hint lo do this. it may be helpful to first determine how much of the $278.000 consisted of utitles and supervisory salaries, Think about the behaviour of variable and fised costsp) (Do not round intermediote colculations. Round your answers to the nearest whole dellar. amount.) 2. By meams of the high-low method, estimate a cost formula for maintenance. (Do not reund intermedilate taiculations, Rotine "Fixed cost" onswer to the nearest whole dellor and "Voriable cost" answer to 2 decintal ploces.l 3. Express the company's tofaloverhead costs in the linear equation form Y=a+bX. (Do not round intermedime caleulations, Aound "Fixed cost" answer to the nearest whole doliar and "Variable cost" answer to 2 decimal places.) 4. What fotal overhead costs mould you expect to be incurred at an operating actwity level of 68,000 machine hours? As an operueng actlvily level of 83,000 machine hours? (Do not round intemediate celculations, Round your answers to the nearest whole dollar amount.)
