1.KAM company's total overhead costs at various levels of activity are presented below:

MonthMachine HoursTotal overhead expensed

January80,000$222,000

February 70,000$198,000

March90,000$246,000

April100,000$260,000

Assume that the total overhead costs above consist of utilities, supervisors' salaries and maintenance. The breakdown of these costs at the 70,000 machine hour level of activity is:

Utilities (variable)$63,000

Supervisory salary (fixed)$16,000

Maintenance (semi-variable) $119,000

$198,000

Maintenance in April amounted to $154,000. Using the high-low method, estimate a cost function for maintenance.