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Nova Company's total overhead costs at various levels of activity follow:

Month Machine-Hours Total Overhead Costs

April 78,000 $ 214,000

May 115,500 286,000

June 96,000 238,000

july 106,000 246,640

Assume that the total overhead costs consist of utilities, supervisory salaries, and maintenance. The breakdown of these costs at the 78,000 machine-hour level of activity is as follows:

Utilities (V) $48,640

Supervisory salaries (F) 22,600

Maintenance (M) 142,760

Total overhead costs $214,000

V = variable; F = fixed; M = mixed.

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

1.As shown, overhead costs in May amounted to $286,000. Determine how much of this consisted of maintenance cost.(Hint:To do this, it may be helpful to first determine how much of the $286,000 consisted of utilities and supervisory salaries. Think about the behaviour of variable and fixed costs!)(Do not round intermediate calculations.Round your answers to the nearest whole dollar amount.)

2.By means of the high-low method, estimate a cost formula for maintenance.(Do not round intermediate calculations. Round "Fixed cost" answer to the nearest whole dollar and "Variable cost" answer to 2 decimal places.)

3.Express the company'stotaloverhead costs in the linear equation formY = a + bX.(Do not round intermediate calculations. Round "Fixed cost" answer to the nearest whole dollar and "Variable cost" answer to 2 decimal places.)

4.Whattotaloverhead costs would you expect to be incurred at an operating activity level of 76,000 machine-hours? At an operating activity level of 91,000 machine-hours?(Do not round intermediate calculations.Round your answers to the nearest whole dollar amount.)

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