Hello Teacher Sol This question Nova Company's total overhead cost at various levels of activity arepresented below:Month Machine Hours Overhead CostApril 45,000May 36,000June 54,000$167,500$145,180$189,820July 63,000$212,140Assume that the total overhead cost above consists of utilities,supervisory salaries, and maintenance. The breakdown of these costs atthe 36,000 machine-hour level of activity is:Utilities (variable)$46,800Supervisory salaries (fixed) 43,000Maintenance (mixed)Total overhead cost55,380$145,180Nova Company's management wants to break down the maintenance costinto its variable and fixed cost elements.Estimate how much of the $212,140 of overhead cost in July wasmaintenance cost.

Step 1: Definition of Overhead CostsOverhead costs refer to indirect expenses that cannot be…

Answered: Nova Company's total overhead cost at…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter6: Activity-based, Variable, And Absorption Costing

Section: Chapter Questions

Problem 8MC: A company calculated the predetermined overhead based on an estimated overhead of $70.000, and the...

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A company has the following information relating to its production costs: Compute the actual and applied overhead using the companys predetermined overhead rate of $23.92 per machine hour. Was the overhead over applied or under applied, and by how much?
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Rulers Company is a neon sign company that estimated overhead will be $60,000, consisting of 1,500 machine hours. The cost to make Job 416 is $95 in neon, 15 hours of labor at $13 per hour, and five machine hours. During the month, it incurs $95 in indirect material cost, $130 in administrative labor, $320 in utilities, and $350 in depreciation expense. What is the predetermined overhead rate if machine hours are considered the cost driver? What is the cost of Job 416? What is the overhead incurred during the month?
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Nova Company’s total overhead cost at various levels of activity are presented below: Month Machine-Hours TotalOverheadCost April 52,000 $ 202,860 May 42,000 $ 179,060 June 62,000 $ 226,660 July 72,000 $ 250,460 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) $ 50,400 Supervisory salaries (fixed) 66,000 Maintenance (mixed) 62,660 Total overhead cost $ 179,060 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 $250,460 of overhead cost in July was maintenance cost. (Hint: to do this, it may be helpful to first determine how much of the $250,460 consisted of utilities and supervisory salaries. Think about the behavior of variable and fixed costs.) 2. Using the high-low…
Nova Company’s total overhead cost at various levels of activity are presented below: Month Machine-Hours TotalOverhead Cost April 52,000 $ 203,860 May 42,000 $ 181,060 June 62,000 $ 226,660 July 72,000 $ 249,460 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) $ 50,400 Supervisory salaries (fixed) 67,000 Maintenance (mixed) 63,660 Total overhead cost $ 181,060
Nova Company's total overhead cost at various levels of activity are presented below: Total Overhead Cost Month April May June July Machine- Hours 54,000 44,000 64,000 74,000 $ 210,240 $ 183,140 $ 237,340 $ 264,440 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) Supervisory salaries (fixed) Maintenance (mixed) Total overhead cost $ 70,400 47,000 65,740 $183,140 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 $264,440 of overhead cost in July was maintenance cost. (Hint: to do this, it may be helpful to first determine how much of the $264,440 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 in the form Y = a +…

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