Problem 5A-8 High-Low Method; Predicting Cost [LOS-10] Nova Company's total overhead cost at various levels of activity are presented below: Tota Nachine-Overhead Month April May June July Hours 51,000 181,360 41,000 157,760 61,000$ 204,960 71,000 228,560 Cost Assume that the total overhead cost above consists of utilities, supervisory salaries, and maintenance. T at the 41,000 machine-hour level of activity is: Utilities (variable) Supervisory salarien (Eixed) Maintenance (mixed ) Total overhead cost $ 53,300 48,000 56,460 $157,760 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 $228.560 of overhead cost in July was maintenance cost. (Hint to do this, it may be helpful to first determine how much of the $228,560 consisted of utlities 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 ?= 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?