4th question

Check my work Colby Limited is a manufacturing company whose total factory overhead costs fluctuate somewhat from year to year, according to the below: number of machine-hours worked in its production facility. These costs at high and low levels of activity over recent years are given Level of Activity Machine-hours Low High Total factory overhead costs 65, 000 $31, 420, 000 75, 000 $33, 400 , 000 The factory overhead costs above consist of indirect materials, rent, and maintenance. The company has analyzed these costs at the 65,000 machine-hours level of activity as follows: Indirect materials (variable) $8, 970, 000 Rent (fixed) 15, 000, 000 Maintenance (mixed ) 7, 450, 000 Total factory overhead costs $31, 420, 090 For planning purposes, the company wants to break down the maintenance cost into its variable and fixed cost elements. Required: 1. Estimate how much of the factory overhead cost of $33,400,000 at the high level of activity consists of maintenance cost. Maintenance cost