Problem 5A-8 High-Low Method: Predicting Cost [LO5-10) Nova Company's total overhead cost at various levels of activity are presented below Total Machines Overhead Month Hours April 50,000 $ 201,300 May 40,000 $ 175,200 June 60,000 $ 227,000 July 70,000 $ 253,500 Cout Assume that the total overhead cost above consists of utilities, supervisory salaries, and maintenance. The breakdown of these costs at the 40,000 machine-hour level of activity is Utilities (variable) Supervisory salaries (fixed) Maintenance (mixed) Total overhead cost $ 56,000 54,000 65200 $175,200 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 $253,500 of overhead cost in July was maintenance cost. (Hint to do this, it may be helpful to first determine how much of the $253,500 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 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 45,000 machine-hours? Assume that the total overhead cost above consists of utilities, supervisory salaries, and maintenance. The breakdown of these costs at the 40,000 machine-hour level of activity is utilities (variable) Supervisory salaries (fixed) Maintenance (mixed) Total overhead cost $ 56,000 54,800 65,200 $175,200 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 $253 500 of overhead cost in July was maintenance cost. (Hint to do this, it may be helpful to first determine how much of the $253,500 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 Y = a + bx 3. Express the company's total overhead cost in the form Y-abx 4. What total overhead cost would you expect to be incurred at an activity del of 45,000 machine hours? Complete this question by entering your answers in the tabs below. Required i Required 2 Required) Required 4 Estimate how much of the $253,500 of overhead cost in July was maintenance cost. (Hint: to do this, it may be helpful to first determine how much of the $253,500 consisted of utilities and supervisory salaries. Think about the behavior of variable and fixed costs.) (Do not round intermediate calculations.) Maintenance cost in July $ 101,500 Regione Required 2 > Assume that the total overhead cost above consists of utilities supervisory salaries, and maintenance. The breakdown of these costs at the 40,000 machine-hour level of activity is Utilities (variable) Supervisory salaries (fixed) Maintenance (mixed) Total overhead cost $ 56,000 54,000 65,200 $175, 200 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 $253,500 of overhead cost in July was maintenance cost (Hint to do this, it may be helpful to first determine how much of the $253,500 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 Y = a +bX 3. Express the company's total overhead cost in the form Y-abx 4 What total overhead cost would you expect to be incurred at an activity level of 45,000 machine hours? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required Required 4 Using the high-low method, estimate a cost formula for maintenance in the form Ya+bX. (Do not round your intermediate calculations. Round the "Variable cost per unit" to 2 decimal places.) YE Required: 1 Estimate how much of the $253.500 of overhead cost in July was maintenance cost. (Hint to do this. It may be helpful to first determine how much of the $253.500 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 Y=a+bX 3. Express the company's total overhead cost in the form Y=8+bX 4 What total overhead cost would you expect to be incurred at an activity level of 45,000 machine-hours? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Express the company's total overhead cost in the form Y-+ bx. (Do not round your intermediate calculations. Round the "Variable cost per unit" to 2 decimal places.) Variable Cost por Machine Hour Fixed Cost Ultes cost Supervisory salaries cost Maintenance cost Total overhead cost $ 0.00 $ 0 Y 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 $253,500 of overhead cost in July was maintenance cost (Hint to do this, it may be helpful to first determine how much of the $253,500 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 Y=+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 45.000 machine hours? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required Required What total overhead cost would you expect to be incurred at an activity level of 45,000 machine-hours not round intermediate calculations) Total Overhead cost