Problem 6A-8 (Algo) High-Low Method; Predicting Cost [LO6-10] Nova Company's total overhead cost at various levels of activity are presented below: Machine- Total Overhead Cost Month April May June July Hours 55,000 $ 201,500 45,000 $ 178,700 65,000 $ 224,300 75,000 $ 247,100 Assume that the total overhead cost above consists of utilities, supervisory salaries, and maintenance. The breakdown of these costs at the 45,000 machine-hour level of activity is: Utilities (variable) Supervisory salaries (fixed) Maintenance (mixed) Total overhead cost $ 54,000 60,000 64,700 $ 178,700 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 $247,100 of overhead cost in July was maintenance cost. (Hint: to do this, it may be helpful to first determine how much of the $247,100 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 50,000 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 $247,100 of overhead cost in July was maintenance cost. (Hint: to do this, it may be helpful to first determine how much of the $247,100 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 1 Required 2 >