Nova Company's total overhead cost at various levels of activity are presented below:
Month Machine-
Hours Total
Overhead Cost
April 52,500 $ 181,475
May 42,000 $ 157,640
June 63,000 $ 205,310
July 73,500 $ 229,145
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) 48,000
Maintenance (mixed) 59,240
Total overhead cost $ 157,640
Nova Company's management wants to break down the maintenance cost into its variable and fixed cost elements.
Estimate how much of the $229,145 of overhead cost in July was maintenance cost. (Hint: to do this, it may be helpful to first determine how much of the $229,145 consisted of utilities and supervisory salaries. Think about the behavior of variable and fixed costs!) (Omit the "tiny_mce_markerquot; sign in your response.)