4. Nova Company's total overhead cost at various levels of activity are presented below: Month April May June July Machine hours 70,000 60,000 80,000 90,000 Utilities (variable). Supervisory salaries (fixed)... Maintenance (mixed). Assume that the total overhead cost above consists of utilities, supervisory salaries, and maintenance. The breakdown of these May month's costs at the 60,000 machine-hour level of activity is: Total O/H cost $205,000 $174,000 $235,000 $255.000 $ 42,000 $27,000 $ 105,000 Total overhead cost......... $174,000 1. Estimate how much of the $255,000 of overhead cost in July was maintenance cost. 2. Using the high-low method, estimate a cost formula for maintenance, and identify the maintenance cost for 120,000 machine hours

4. Nova Company's total overhead cost at various levels of activity are presented below: Month April May June July Machine hours 70,000 60,000 80,000 90,000 Utilities (variable). Supervisory salaries (fixed)... Maintenance (mixed). Assume that the total overhead cost above consists of utilities, supervisory salaries, and maintenance. The breakdown of these May month's costs at the 60,000 machine-hour level of activity is: Total O/H cost $205,000 $174,000 $235,000 $255.000 $ 42,000 $27,000 $ 105,000 Total overhead cost......... $174,000 1. Estimate how much of the $255,000 of overhead cost in July was maintenance cost. 2. Using the high-low method, estimate a cost formula for maintenance, and identify the maintenance cost for 120,000 machine hours

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Description: 4. Nova Company's total overhead cost at various levels of activity are presented below:MonthAprilMayJuneJulyMachine hours70,00060,00080,00090,000Utilities (variable).Supervisory salaries (fixed).Maintenance (mixed)Assume that the total overhead cos

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter4: Activity-based Costing

Section: Chapter Questions

Problem 11E: Ripley, Inc., costs products using a normal costing system. The following data are available for...

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