Y= X + 3. Express the company's total overhead cost in the linear equation form Y a bX. (Do not round your intermediate calculations. Round the "Variable cost per machine-hours" to 2 decimal places.) Variable Cost per Fixed Cost Machine-Hour Utilities cost Supervisory salaries cost Maintenance cost Total overhead cost 4. What total overhead cost would you expect to be incurred at an activity level of 47,000 machine-hours? (Do not round intermediate calculations.) Total overhead cost

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Nova Company’s total overhead cost at various levels of activity are presented below:

 

Month Machine-
Hours
  Total
Overhead 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  

 

Y=
X
+
3. Express the company's total overhead cost in the linear equation form Y a bX. (Do not round your intermediate calculations.
Round the "Variable cost per machine-hours" to 2 decimal places.)
Variable Cost per
Fixed Cost
Machine-Hour
Utilities cost
Supervisory salaries cost
Maintenance cost
Total overhead cost
4. What total overhead cost would you expect to be incurred at an activity level of 47,000 machine-hours? (Do not round intermediate
calculations.)
Total overhead cost
Transcribed Image Text:Y= X + 3. Express the company's total overhead cost in the linear equation form Y a bX. (Do not round your intermediate calculations. Round the "Variable cost per machine-hours" to 2 decimal places.) Variable Cost per Fixed Cost Machine-Hour Utilities cost Supervisory salaries cost Maintenance cost Total overhead cost 4. What total overhead cost would you expect to be incurred at an activity level of 47,000 machine-hours? (Do not round intermediate calculations.) Total overhead cost
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