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: Total Overhead Cost $ 170,500 $ 148,000 Month April May June July Machine-Hours 46,000 36,000 56,000 66,000 Assume the total overhead cost above consists of utilities, supervisory salaries, and maintenance. The breakdown of these costs at the 36,000 machine-hour level of activity is: Utilities (variable) Supervisory salaries (fixed) Maintenance (mixed) Total overhead cost $ 193,090 $ 215,500 Nova Company's management wants to break down the maintenance cost into its variable and fixed cost elements. Required 1 Required: 1. Estimate how much of the $215,500 of overhead cost in July was maintenance cost. (Hint: To do this, it may be helpful to first determine how much of the $215,500 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 at an activity level of 41,000 machine-hours? Complete this question by entering your answers in the tabs below. Required 2 $ 39,600 54,000 54,400 $ 148,000 Maintenance cost in July Required 3 Required 4 Estimate how much of the $215,500 of overhead cost in July was maintenance cost. (Hint: to do this, it may be helpful to first determine how much of the $215,500 consisted of utilities and supervisory salaries. Think about the behavior of variable and fixed costs.) Note: Do not round your intermediate calculations. Required 1 Required 2 >