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: Assume that the total overhead cost above consists of utiilies, supervisory salaries, and maintenance. The breakdown of these costs at the 36,000 machine-hour level of activity is: Nova Company's management wants to break down the maintenance cost into lts variable and fixed cost elements. Required: 1. Estimate how much of the $218,340 of overhead cost in July was maintenance cost. (Hint to do this, it may be helpful to first determine how much of the $218,340 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 41,000 machine-hours? Estimate how much of the $218,340 of overhead cost in July was maintenance cost. (Hint: to do this, it may be helpful to first determine how much of the $218,340 consisted of utilities and supervisory salories. Think about the behavior of variable and fixed costs.) (Do not round intermediate calculations.) Using the high-low method, estimate a cost formula for maintenance in the form Y=a+bX. (Do not round your intermediate calculations. Round the "Variable cost per machine hour" to 2 decimal places.) Express the company's total overhead cost in the form Y=a+bX. Do not round your intermediate calculations. Round the "Variable cost per machine hour" to 2 decimal places.) What total overhead cost would you expect to be incurred at an actlvity level of 41,000 machine-hours? (Do not round ntermediate calculations.)