Nova Company’s total overhead cost at various levels of activity are presented below: Month Machi…

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Show transcribed image text Nova Company’s total overhead cost at various levels of activity are presented below: Month Machine-Hours Total Overhead Cost 48,000 $206,580 April 38,000 $179,480 May 58,000 $233,680 June 68,000 $260,780 July Assume that the total overhead cost above consists of utilities, supervisory salaries, and maintenance. The breakdown of these costs at the 38,000 machine-hour level of activity is: 60,800 Utilities (variable) Supervisory salaries (fixed) 61,000 Maintenance (mixed) 57,680 179,480 Total overhead cost Nova Company’s management wants to break down the maintenance cost into its variable and fixed cost elements Required: 1. Estimate how much of the $260,780 of overhead cost in July was maintenance cost. (Hint: To do this, it may be helpful to first determine how much of the $260,780 consisted of utilities and supervisory salaries. Think about the behavior of variable and fixed costs!) (Do not round intermediate calculations.) Maintenance cost in July

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