Mathematics, 23.10.2019 17:00 derick263
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 $246,000 of overhead cost in july was maintenance cost. (hint: to do this, it may be to first determine how much of the $246,000 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 + bx. 3. express the company’s total overhead cost in the form y = a + bx. 4. what total overhead cost would you expect to be incurred at an activity level of 75,000 machine-hours?
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Nova company’s management wants to break down the maintenance cost into its variable and fixed cost...
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