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

please solve required 2 and 3 please please solve required 2 and 3 please Nova Company s total overnead

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.)

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!