Nova Companys total overhead
Nova Company's total overhead cost at various levels of activity are presented below! Month April May June July Total Machine - Overhead Hours Cost 47,000 $187,050 37,000 $159,550 57,000 $214,550 67,000 $242,050 Assume that the total overhead cost above consists of utilities, supervisory salaries, and maintenance. The breakdown of these costs at the 37,000 machine-hour level of activity is: Utilities (variable) Supervisory salaries (fixed) Maintenance (mixed) Total overhead cost $ 55,500 40,000 64,050 $159,550 Nova Company's management wants to break down the maintenance cost into its variable and fixed cost elements Required: 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 $242,050 of overhead cost in July was maintenance cost. (Hint to do this, it may be helpful to first determine how much of the $242,050 consisted of utilities and supervisory salaries. Think about the behavior of variable and fixed costs.) 2. Using the high-low method, estimate a cost formula for maintenance in the form Ya+bX. 3. Express the company's total overhead cost in the form Y=a+bX 4. What total overhead cost would you expect to be incurred at an activity level of 42,000 machine-hours? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Estimate how much of the $242,050 of overhead cost in July was maintenance cost. (Hint: to do this, it may be helpful to first determine how much of the $242,050 consisted of utilities and supervisory salaries. Think about the behavior of variable and fixed costs.) (Do not round Intermediate calculations. Maintenance cost in July Required 2 > Nova Company's management wants to break down the maintenance cost into its variable and fixed cost elt Required: 1 Estimate how much of the $242,050 of overhead cost in July was maintenance cost. (Hint to do this, it ma determine how much of the $242,050 consisted of utilities and supervisory salaries. Think about the behavi costs.) 2. Using the high-low method, estimate a cost formula for maintenance in the form Y= a + bx 3. Express the company's total overhead cost in the form Y=a+bX 4. What total overhead cost would you expect to be incurred at an activity level of 42,000 machine hours? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Using the high-low method, estimate a cost formula for maintenance in the form Y = a + bx. (Do not round you calculations. Round the "Variable cost per unit" to 2 decimal places.) Using the high-low method, estimate a cost formula for maintenance in the form Y=a+bX 3. Express the company's total overhead cost in the form Y a+bX 1. What total overhead cost would you expect to be incurred at an activity level of 42,000 machine hours? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 4 What total overhead cost would you expect to be incurred at an activity level of 42,000 machine-hours? (Do not round intermediate calculations.) Total overhead costs
