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PLEASE ANSWER ALL PARTS Problem 1-20A High-Low Method, Predicting Cost [L01-4, L01-5] Nova Company's total overhead cost at various levels of activity are presented below
PLEASE ANSWER ALL PARTS
Problem 1-20A High-Low Method, Predicting Cost [L01-4, L01-5] Nova Company's total overhead cost at various levels of activity are presented below Month Machine-Hours Total Overhead Cost 45,000 April $183,850 May 35,000 $156,750 $210,950 June 55,000 65,000 $238,050 July Assume that the total overhead cost above consists of utilities, supervisory salaries, and maintenance. The breakdown of these costs at the 35,000 machine-hour level of activity is 56,000 Utilities (variable) Supervisory salaries (fixed) 42,000 58,750 Maintenance (mixed) 156,750 Total overhead cost 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 $238,050 of overhead cost in July was maintenance cost. (Hint: To do this, it may be helpful to first determine how much of the $238,050 consisted of utilities and supervisory salaries. Think about the behavior of variable and fixed costs!) (Do not round intermediate calculations.) Maintenance cost in JulyStep by Step Solution
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