# M2: End of the Week - M2 End of the Week 2.Assume that the...

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M2: End of the Week2.Assume that the total overhead cost above consists of utilities, supervisory salaries, and maintenance. The breakdown of these costs at the 44,000 machine-hour level of activity is: Utilities (variable)\$61,600Supervisory salaries (fixed)64,000 Maintenance (mixed)64,020 Total overhead cost\$189,620Nova Company’s management wants to break down the maintenance cost into its variable and fixed cost elements.Required:1. Estimate how much of the \$265,520 of overhead cost in July was maintenance cost. (Hint:To do this, it may be helpful to first determine how much of the \$265,520 consisted of utilities and supervisory salaries. Think about the behavior of variable and fixed costs!) 2. Using the high-low method, estimate a cost formula for maintenance. 3. Express the company’s totaloverhead cost in the linear equation form Y = a + bX4. What totaloverhead cost would you expect to be incurred at an activity level of 49,000 machine-hours?.