A Companys total overhead costs at various levels of activity are presented below:

Month	Machine-Hours	Total Overhead Cost
April	74,000	$	179,000
May	64,000	$	187,000
June	84,000	$	266,000
July	95,000	$	240,000

Assume that the overhead cost above consists of utilities, supervisory salaries, and maintenance. The breakdown of these costs at the 64,000-machine-hour level of activity in May is as follows:

Utilities (variable)	$	50,000
Supervisory salaries (fixed)		20,000
Maintenance (mixed)		117,000
Total overhead cost	$	187,000

The company wants to break down the maintenance cost into its variable and fixed cost elements.

1. Estimate how much of the $240,000 of overhead cost in July was maintenance cost. (Hint: To do this, first determine how much of the $240,000 consisted of utilities and supervisory salaries. Think about the behaviour of variable and fixed costs within the relevant range.) (Round the "Variable cost per unit" to 2 decimal places.)

2. Using the highlow method, estimate a cost formula for maintenance. (Round the "Variable cost per unit" to 2 decimal places.)

3. Express the companys total overhead cost in the form Y = a + bX. (Round the "Variable cost per unit" to 2 decimal places.)

4. What total overhead cost would you expect to be incurred at an activity level of 79,000 machine-hours? (Round the "Variable cost per unit" to 2 decimal places.)