Question: please solve required 2 and 3 please Nova Company s total overnead cost at vanous ieveis or activity are presented deiow: Assume that the total
Nova Company s total overnead cost at vanous ieveis or activity are presented deiow: Assume that the total overhead cost above consists of ublities, supervisory salaries, and maintenance. The breakdown of these cost: at the 41,000 machine-hour level of activity is: 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 $251,140 of overhead cost in July was maintenance cost. (Hint to do this, it may be helpful to first determine how much of the $251,140 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 46,000 machine-hours? Complete this question by entering your answers in the tabs below. Using the high-low method, estimate a cost formula for maintenance in the form Y=a+bX. (Do not round your interm ed ate calculations, Round the "Variable cost per unit" to 2 decimal places.)
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