ABC Company's total overhead costs at various levels of activity are presented below:

Machine hoursTotal overhead costs

March 60,000$216,800

April 50,000194,000

May 70,000239,600

June 80,000 262,400Assume that the overhead costs above consist of utilities, supervisory salaries, and maintenance. At the 50,000-machine-hour level of activity, these costs are presented below:

Utilities (V)$54,000

Supervisory salaries (F)62,000

Maintenance (M)78,000

Total overhead costs$194,000

V = Variable; F = Fixed; M = Mixed.

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

Required:

a) Estimate the maintenance cost for June.

b) Use the high-low method to estimate the cost formula for maintenance cost.

d) Estimate the total overhead cost at an activity level of 55,000 machine-hours, independent of the separate estimates you obtained for its components.