Solution 1:
Utilities cost per machine hour = $55,900 / 43000 = $1.30 per machine hour
Maintenance cost for July = $249,460 - (73000*$1.30) - $46,000 = $108,560
Solution 2:
Variable cost of maintenance per machine hour = (Cost at high level - Cost at low level) / (High level activity - Low level activity)
= ($108,560 - $71,960) / (73000 - 43000) = $1.22 per machine hour
Fixed cost of maintenance = $108,560 - (73000*$1.22) = $19,500
Cost formula: Y = $19,500 + 1.22 X
Solution 3:
Total overhead cost : Y = ($46,000 + $19,500) + ($1.30 + $1.22) X
= $65,500 + $2.52 X
Solution 4:
Expected overhead costs = $65,000 + (48000*$2.52) = $185,960
Check my work Nova Company's total overhead cost at various levels of activity are presented April...
Nova Company's total overhead cost at various levels of activity are presented below: Month April May June July Machine- Hours 53,000 43,000 63,000 73,000 Total Overhead Cost $ 215, 940 $ 189, 140 $ 242,740 $ 269,540 Assume that the total overhead cost above consists of utilities, supervisory salaries, and maintenance. The breakdown of these costs at the 43,000 machine-hour level of activity is: Utilities (variable) Supervisory salaries (fixed) Maintenance (mixed) Total overhead cost $ 64,500 55,000 69,640 $189, 140...
Nova Company's total overhead cost at various levels of activity are presented below. Month April MAY June July Machine- Hours 51.000 41.000 61,000 71,000 Total Overhead Cost $ 181,310 $ 158,210 $ 204, 410 $227,510 Assume that the total overhead cost above consists of utilities, supervisory salaries, and maintenance. The breakdown of these costs at the 41,000 machine-hour level of activity is: Utilities (variable) Supervisory salaries (fixed) Maintenance (mixed) Total overhead cost $ 49,200 51,000 58,010 $158,210 Nova Company's management...
Nova Company's total overhead cost at various levels of activity are presented below: Month April May June July Machine- Hours 46,000 36,000 56,000 66,000 Total Overhead Cost $ 186,020 $ 161,820 $ 210,220 $ 234, 420 Assume that the total overhead cost above consists of utilities, supervisory salaries, and maintenance. The breakdown of these costs at the 36,000 machine-hour level of activity is: Utilities (variable) Supervisory salaries (fixed) Maintenance (mixed) Total overhead cost $ 43, 200 60,000 58,620 $ 161,...
Nova Company's total overhead cost at various levels of activity are presented below: Month April May June July Machine- Hours 51,000 41,000 61,000 71,000 Total Overhead Cost $ 208, 040 $ 182,640 $ 233, 440 $ 258, 840 Assume that the total overhead cost above consists of utilities, supervisory salaries, and maintenance. The breakdown of these costs at the 41,000 machine-hour level of activity is: Utilities (variable) Supervisory salaries (fixed) Maintenance (mixed) Total overhead cost $ 53,300 63,000 66,340 $182,640...
Nova Company's total overhead cost at various levels of activity are presented below: Month April May June July Machine- Hours 45,000 35,000 55,000 65,000 Total Overhead Cost $ 192,900 $ 166,900 $ 218,900 $ 244,900 Assume that the total overhead cost above consists of utilities, supervisory salaries, and maintenance. The breakdown of these costs at the 35,000 machine-hour level of activity is: Utilities (variable) Supervisory salaries (fixed) Maintenance (mixed) Total overhead cost $ 49,000 60,000 57,900 $ 166,900 Nova Company's...
Nova Company's total overhead cost at various levels of activity are presented below: Month April May June July Machine- Hours 54,000 44,000 64,000 74,000 Total Overhead Cost $ 196,260 $ 171,860 $ 220,660 $ 245,060 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 $ 57,200 45,000 69,660 $171,860 Nova Company's management...
Nova Company's total overhead cost at various levels of activity are presented below: Month April May June July Machine- Hours 50,000 40,000 60,000 70,000 Total Overhead Cost $ 187,300 $ 161,500 $ 213,100 $ 238,900 Assume that the total overhead cost above consists of utilities, supervisory salaries, and maintenance. The breakdown of these costs at the 40,000 machine-hour level of activity is: Utilities (variable) Supervisory salaries (fixed) Maintenance (mixed) Total overhead cost $ 56,000 45,000 60,500 $161,500 Nova Company's management...
Nova Company’s total overhead
Nova Company's total overhead cost at various levels of activity are presented below! Month April May June July Total Machine - Overhead Hours Cost 47,000 $187,050 37,000 $159,550 57,000 $214,550 67,000 $242,050 Assume that the total overhead cost above consists of utilities, supervisory salaries, and maintenance. The breakdown of these costs at the 37,000 machine-hour level of activity is: Utilities (variable) Supervisory salaries (fixed) Maintenance (mixed) Total overhead cost $ 55,500 40,000 64,050 $159,550 Nova Company's...
Nova Company's total overhead cost at various levels of activity are presented below: Total Machine-Overhead Month April May June July Cost Hours 49,000190,590 39,000 $165,490 59,000215, 690 69,000 240,790 Assume that the total overhead cost above consists of utilities, supervisory salaries, and maintenance. The breakdown of these costs at the 39,000 machine-hour level of activity is: Utilities (variable) Supervisory salaries (fixed) Maintenance (mixed) Total overhead cost $ 50,700 49,000 65,790 $165,490 Nova Company's management wants to break down the maintenance...
Nova Company's total overhead cost at various levels of activity are presented below: Total Machine-Overhead Month April May June July Hours Cost 55,000 205,600 45,000179,600 65,000 75,000 ş 231,600 ş 257,600 Assume that the total overhead cost above consists of utilities, supervisory salaries, and maintenance. The breakdown of these costs at the 45,000 machine-hour level of activity is Utilities (variable) Supervisory salaries (fixed) Maintenance (mixed) Total overhead cost $67,500 49,000 63,100 $179,600 Nova Company's management wants to break down the...