Problem 5A-8 (Algo) High-Low Method; Predicting Cost [LO5-10] Nova Company's total overhead cost at various levels of activity are presented below: Month April May June July Machine Hours 54,000 44,000 64,000 74,000 Total Overhead Cost $ 221,000 $ 194,500 $ 247,500 $ 274,000 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 $ 70,400 65,086 59,100 $194,500 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 $274,000 of overhead cost in July was maintenance cost. (Hint to do this, it may be helpful to first determine how much of the $274.000 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=3*bX. 3. Express the company's total overhead cost in the form Y-3 + bx 4. What total overhead cost would you expect to be incurred at an activity level of 49,000 machine-hours? Complete this question by entering your answers in the tabs below. Nova Company's management wants to break down the maintenance cost Required: 1. Estimate how much of the $274,000 of overhead cost in July was mainte determine how much of the $274,000 consisted of utilities and supervisory costs.) 2. Using the high-low method, estimate a cost formula for maintenance in th 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 l- Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Estimate how much of the $274,000 of overhead cost in July was maintenance determine how much of the $274,000 consisted of utilities and supervisory sal fixed costs.) (Do not round intermediate calculations.) Maintenance cost in July