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Nova Company's total overhead costs at various levels of activity follow: Machine- Total Overhead Month April Hours Costs 72,000 $ 202,000 104,000 274,000 May
Nova Company's total overhead costs at various levels of activity follow: Machine- Total Overhead Month April Hours Costs 72,000 $ 202,000 104,000 274,000 May June July 84,000 94,000 226,000 246,640 Assume that the total overhead costs consist of utilities, supervisory salaries, and maintenance. The breakdown of these costs at the 72,000 machine-hour level of activity is as follows: Utilities (V) Supervisory salaries (F) Maintenance (M) Total overhead costs V variable: F fixed; M = mixed. $ 48,640 21,400 131,960 $202,000 Nova Company's management wants to break the maintenance cost down into its basic variable and fixed cost elements. Required: 1. As shown, overhead costs In May amounted to $274,000. Determine how much of this consisted of maintenance cost. (Hint: To do this, it may be helpful to first determine how much of the $274,000 consisted of utilities and supervisory salaries. Think about the behaviour of variable and fixed costs!) (Do not round Intermediate calculations. Round your answers to the nearest whole dollar amount.) Maintenance cost
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