Problem 5A-8 High-Low Method; Predicting Cost (L05-10) Nova Company's total overhead cost at various levels of activity are presented below: Month April May June July Machine- Hours 51,000 41,000 61,000 71,000 Total Overhead Cost $ 212,630 $ 187,330 $ 237,930 $ 263,230 Assume that the total overhead cost above consists of utilities, supervisory salaries, and maintenance. The breakdown of these costs at the 41,000 machine-hour level of activity is: Utilities (variable) Supervisory salaries (fixed) Maintenance (mixed) Total overhead cost $ 57,400 -70,000 59,930 $187,330 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 $263,230 of overhead cost in July was maintenance cost. (Hint: to do this, it may be helpful to first determine how much of the $263,230 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 Ya+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. Required 1 Required 2 Required a Required 4 Estimate how much of the $263,230 of overhead cost in July was maintenance cost. (Hint: to do this, it may be helpful to first determine how much of the $263.230 consisted of utilities and supervisory salaries. Think about the behavior of variable and Assume that the total overhead cost above consists of utilities, supervisory salaries, and maintenance. The breakdown of these cos at the 41,000 machine-hour level of activity is: 4 Utilities (variable) Supervisory salaries (fixed) Maintenance ixed Total overhead cost $ 57,400 70,000 59,930 $187,330 10 points eBook 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 $263,230 of overhead cost in July was maintenance cost. (Hint: to do this, it may be helpful to first determine how much of the $263,230 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? Print References Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Estimate how much of the $263,230 of overhead cost in July was maintenance cost. (Hint: to do this, it may be helpful to first determine how much of the $263,230 consisted of utilities and supervisory salaries. Think about the behavior of variable and fixed costs.) (Do not round intermediate calculations.) Maintenance cost in July RO Required 2 > Assume that the total overhead cost above consists of utilities, supervisory salaries, and maintenance. The breakdown of these costs at the 41,000 machine-hour level of activity is: Utilities (variable) Supervisory salaries (fixed) Maintenance (mixed) Total overhead cost $ 57,400 70,000 59,930 $187,330 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 $263,230 of overhead cost in July was maintenance cost. (Hint: to do this, it may be helpful to first determine how much of the $263,230 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? os Complete this question by entering your answers in the tabs below. Required 1 Refquired 2 Required 3 Required 4 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 unit" to 2 decimal places.) Utilities (variable) Supervisory salaries (fixed) Maintenance (mixed) Total overhead cost $ 57,400 70,000 59,930 $187,330 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 $263,230 of overhead cost in July was maintenance cost. (Hint: to do this, it may be helpful to first determine how much of the $263,230 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. Required 1 Required 2 Required Required 4 Express the company's total overhead cost in the form Y-a + bx. (Do not round your intermediate calculations. Round the "Variable cost per unit" to 2 decimal places.) Fixed Cost Variable Cost per Machine- Hour Utilities cost Supervisory salarios cost Maintenance cost Total overhead cost apter 5b heducation.com%252F#activity question Saved Assume that the total overhead cost above consists of utilities, supervisory salaries, and maintenance. The breakdown of these costs at the 41,000 machine-hour level of activity is: Utilities (variable) Supervisory salaries (fixed) Maintenance (mixed) Total overhead cost $ 57,400 70,000 59,930 $187,330 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 $263,230 of overhead cost in July was maintenance cost. (Hint: to do this, it may be helpful to first determine how much of the $263,230 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 Ya+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. Required 1 Required 2 Required 3 Required 4 What total overhead cost would you expect to be incurred at an activity level of 46,000 machine-hours? (Do not round intermediate calculations.) Total overhead cost