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Nova Company's total overhead costs at various levels of activity are presented below. Assume that the total overhead costs above consist of utilities, supervisory salaries and maintenance. The breakdown of these costs at the 60,000 machine-hour level of activity is: Nova Company's management wants to break down the maintenance cost into its basic variable and fixed cost elements. Required: 1.As shown above, overhead costs in July amounted to 250,000. Determine how much of this consisted of maintenance cost. (Hint: to do this, it may be helpful first to determine how much of the 250,000 consisted of utilities and supervisory salaries. Think about the behaviour of variable and fixed costs!) (Do not round your intermediate calculations.) 2.By means of the high-low method, estimate a cost formula for maintenance. (Do not round variable cost element in the intermediate calculations. Round the first coefficient to the nearest whole number and the second coefficient to 2 decimal places.) The cost formula for maintenance is Y= The following cost data relate to the manufacturing activities of Chang Company during the just completed year: The company uses a predetermined overhead rate to apply overhead cost to production. The rate for the year was 30 per machine-hour. A total of 19,100 machine-hours was recorded for the year. Required 1. Compute the amount of under-applied or over-applied cost for the year (Enter all amounts as a positive values). 2. Prepare a schedule of cost of goods manufactured for the year (Enter all amounts as a positive values). Sawaya Co. Ltd. of Japan is a manufacturing company whose total factory overhead costs fluctuate considerably from year to year according to increases and decreases in the number of direct labour-hours worked in the factory. Total factory overhead costs (in Japanese yen, denoted ) at high and low levels of activity for recent years are given below: The factory overhead costs above consist of indirect materials, rent and maintenance. The company has analysed these costs at the 50,000-hour level of activity as follows: To have data available for planning, the company wants to break down the maintenance cost into its variable and fixed cost elements. Required: 1.Estimate how much of the 17,411,000 factory overhead cost at the high level of activity consists of maintenance cost. (Hint: To do this, it may be helpful to first determine how much of the 17,411,000 consists of indirect materials and rent. Think about the behaviour of variable and fixed costs!) 2.By means of the high-low method of cost analysis, estimate a cost formula for maintenance. (Do not round variable cost element in the intermediate calculations. Round the first coefficient to nearest whole number and round the second coefficient to 2 decimal places.) 3.What total factory overhead costs would you expect the company to incur at an operating level of 70,000 direct labour-hours? (Do not round variable cost element in the intermediate calculations. Round your answer to nearest whole number.)

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