Nova Companys total overhead cost at various levels of activity are presented below: ...
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Nova Companys total overhead cost at various levels of activity are presented below:
Month Machine- Hours Total Overhead Cost April 46,000 $ 184,460 May 36,000 $ 160,360 June 56,000 $ 208,560 July 66,000 $ 232,660
Assume that the total overhead cost above consists of utilities, supervisory salaries, and maintenance. The breakdown of these costs at the 36,000 machine-hour level of activity is:
Utilities (variable) $ 43,200 Supervisory salaries (fixed) 54,000 Maintenance (mixed) 63,160 Total overhead cost $ 160,360
Nova Companys management wants to break down the maintenance cost into its variable and fixed cost elements.
Express the companys 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.)
Variable Cost per Machine-Hour Fixed Cost Utilities cost Supervisory salaries cost
Nova Companys total overhead cost at various levels of activity are presented below:
| Month | Machine- Hours | Total Overhead Cost | |||
| April | 46,000 | $ | 184,460 | ||
| May | 36,000 | $ | 160,360 | ||
| June | 56,000 | $ | 208,560 | ||
| July | 66,000 | $ | 232,660 | ||
Assume that the total overhead cost above consists of utilities, supervisory salaries, and maintenance. The breakdown of these costs at the 36,000 machine-hour level of activity is:
| Utilities (variable) | $ | 43,200 |
| Supervisory salaries (fixed) | 54,000 | |
| Maintenance (mixed) | 63,160 | |
| Total overhead cost | $ | 160,360 |
Nova Companys management wants to break down the maintenance cost into its variable and fixed cost elements.
Express the companys 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.)
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