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

Machine hourstotal overhead costs

March60,000$216,800

April50,000$194,000

May70,000239,600

June 80,000262,400

Assume 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

Legend: V=Variable, F=Fixed, M=Mixed

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

Estimate the maintenance cost for June.

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

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