Problem 6A-8 High-Low Method: Predicting Cost [LO6-10] Nova Company's total overhead cost at various levels of activity are presented below Total Machine- Overhead Month Cost Houns April51,0ee $178,840 May 41,eee $154, 640 une61,000 $201,440 July71,e00$224,840 coboe consists o tes seony salaries, and mainteniances The breakdown of these costs salaries, and maintenance. The breakdown of these costs rvisory at the 41,000 machine-hour level of activity is Utilities (variable) Supervi sory salaries (fixed)46,ee0 Maintenance (mixed) Total overhead cost $ 45,100 63,548 $154, 640 Nova Company Required: 1 Estimate how much of the $224 840 of overhead cost in July was maintenance cost (Hint to do this, it may be helpful to first y's management wants to break down the maintenance cost into its variable and fixed cost elements consisted of utilities and supervisory salaries. Think about the the behavior of variable and fixed costs) 2. Using the high-low method, estimate a cost formula for maintenance in the form Yat 3. Express the company's total overhead cost in the form Y at bx 4 What total overhead cost would you expect to be incurred at an activity level of 46.000 machine-hours