Nova Company's total overhead costs at various levels of activity follow: 9 Month April May June July Machine- Hours 79,000 117,500 98,000 108,000 Total Overhead Costs $ 216,000 288,000 240,000 246,360 10 points Skipped Assume that the total overhead costs consist of utilities, supervisory salaries, and maintenance. The breakdown of these costs at the 79,000 machine-hour level of activity is as follows: eBook Print Utilities (V) Supervisory salaries (F) Maintenance (M) Total overhead costs $ 48,360 22,800 144,840 $216,000 References V = variable; F = fixed; M = mixed. 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 $288,000. Determine how much of this consisted of maintenance cost. (Hint: To do this, it may be helpful to first determine how much of the $288,000 consisted of utilities and supervisory salaries. Think about the behaviour of variable and fived coctellino nat round intermediate calculations Dound your ancware to the nearact whole dollar V = variable; F = fixed; M = mixed. Nova Company's management wants to break the maintenance cost down into its basic variable and fixed cost elements. 9 Required: 1. As shown, overhead costs in May amounted to $288,000. Determine how much of this consisted of maintenance cost. (Hint: To do this, it may be helpful to first determine how much of the $288,000 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.) 10 points Skipped Maintenance cost eBook Print References 2. By means of the high-low method, estimate a cost formula for maintenance. (Do not round intermediate calculations. Round "Fixed cost" answer to the nearest whole dollar and "Variable cost" answer to 2 decimal places.) Y= + IX 9 3. Express the company's total overhead costs in the linear equation form Y = a + bx. (Do not round intermediate calculations. Round "Fixed cost" answer to the nearest whole dollar and "Variable cost" answer to 2 decimal places.) 10 points Y= Skipped eBook Print 4. What total overhead costs would you expect to be incurred at an operating activity level of 78,000 machine-hours? At an operating activity level of 93,000 machine-hours? (Do not round intermediate calculations. Round your answers to the nearest whole dollar amount.) References Total Overhead Cost 78,000 machine-hours 93,000 machine-hours