Chapter 5 Appendix Exercise

Solve all required problems above.

Nova Company's total overhead cost at various levels of activity are presented below Total Overhead Cost $ 183,040 Machine- Month April May June July Hours 54,000 44,000 161,440 64,000204,640 74,000 226,240 Assume that the total overhead cost above consists of utilities, supervisory salaries, and maintenance. The breakdown of these costs at the 44,000 machine-hour level of activity is Utilities (variable) Supervisory salaries (fixed) Maintenance (mixed) Total overhead cost $48,400 49,000 64,040 $161,440 Nova Company's management wants to break down the maintenance cost into its variable and fixed cost elements