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Nova Companys total overhead cost at various levels of activity are presented below: ...

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Accounting

Nova Companys total overhead cost at various levels of activity are presented below:
Month, Machine-Hours, Total Overhead Cost
April, 51,000, $206,330
May, 41,000, $179,030
June, 61,000, $233,630
July, 71,000, $260,930
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:
Utilities (variable) $ 61,500
Supervisory salaries (fixed)51,000
Maintenance (mixed)66,530
Total overhead cost $ 179,030
Nova Companys management wants to break down the maintenance cost into its variable and fixed cost elements.
Required:
Estimate how much of the $260,930 of overhead cost in July was maintenance cost. (Hint: To do this, it may be helpful to first determine how much of the $260,930 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 companys 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?

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