Assume that the total overhead cost above consists of

Reference no: EM13481555

Nova Company's total overhead cost at various levels of activity are presented below:

Month Machine- Hours Total Overhead Cost

April 52,500 $ 205,200
May 42,000 $ 180,000
June 63,000 $ 230,400
July 73,500 $ 255,600

Assume that the total overhead cost above consists of utilities, supervisory salaries, and maintenance. The breakdown of these costs at the 42,000 machine-hour level of activity is:

Utilities (variable) $ 54,600
Supervisory salaries (fixed) 64,000
Maintenance (mixed) 61,400
Total overhead cost $ 180,000

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

Requirement 1: Estimate how much of the $255,600 of overhead cost in July was maintenance cost.

Maintenance cost $
Requirement 2: Using the high-low method, estimate a cost formula for maintenance.
Y = $ + $ X
Requirement 3: Express the company's total overhead cost in the linear equation form Y = a +bX.
Y = $ + $ X
Requirement 4: What total overhead cost would you expect to be incurred at an operating activity level of 46,200 machine-hours?
Total overhead costs $

Reference no: EM13481555

Questions Cloud

Open the ledger accounts for the account titles referred in : problem 2-5a recording transactions posting to ledger preparing a trial balance l.o. c3 a1 p1 p2 business transactions

Black hair in the guinea pig is dominant to white hair in : black hair in the guinea pig is dominant to white hair in families of 5 offsprings where both parents are heterozygous

The following accounts were taken from the unadjusted : the following accounts were taken from the unadjusted trial balance of orion co a congressional lobby firm. indicated

Which of these are considered manufacturing overhead which : which of these are considered manufacturing overhead?service department costs direct labor wages direct labor fringe

Assume that the total overhead cost above consists of : nova companys total overhead cost at various levels of activity are presented belowmonth machine- hours total overhead

Becky is the owner of brooksone farm on january 12007 the : becky is the owner of brooksone farm. on january 12007 the beginning of the companys fiscal year becky borrowed 750000

One of the constraints of conceptual framework for : one of the constraints of conceptual framework for financial reporting informationis material if its omission or

Chapman company obtains 100 percent of abernethy companys : chapman company obtains 100 percent of abernethy companys stock on january 1 2009. as of that date abernethy has the

Sanderson company has the following production data for : sanderson company has the following production data for march no beginning work in process units started and completed

User Account

All Pages