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Nova Company's total overhead cost at various levels of activity are presented below:

Assume 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:

Nova Company's management wants to break down the maintenance cost into its variable and

fixed cost elements.

Required:

Estimate how much of the $$246,620$ of overhead cost in July was maintenance cost. $($Hint: To

do this, it may be helpful to first determine how much of the $$246,620$ consisted of utilities

and supervisory salaries. Think about the behavior of variable and fixed costs.$)$

Using the high$-$low method, estimate a cost formula for maintenance in the form $Y=a+bx.$

Express the company's total overhead cost in the form $Y=a+bx.$

What total overhead cost would you expect at an activity level of $46,000$ machine$-$hours?

Complete this question by entering your answers in the tabs below.

Required $1$

Estimate how much of the $$246,620$ of overhead cost in July was maintenance cost. $($Hint: to do this,

determine how much of the $$246,620$ consisted of utilities and supervisory salaries. Think about the $t$

fixed costs.$)$

Note: Do not round your intermediate calculations.

Answer $1,2,3,4.$

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