Botiseri ltd has the following total factory overhead computed at both the high and low level of activity for a given month of operation:

level of activity direct labour hour high $150,000$ low $100,000$

total factoty cost high $352,500,$ low $284,000.$

the total factory overhead above consists of indirect materials, repairs and rent expenses. the company has analysed, at the$100,000$ direct labour hours of activity level that cost exists in the following proportions:

indirect materials $($variable$)$ #$100,000$ repairs #$64,000$ rent$($fixed$)120,000.$total #$284,000.$

for plannnng purposes, the company wishes to break the repair costs into its variable and fixed elements.

you are required to

a$)$ Determine how much of the #$352,500$ total factory overhead costs at the high level of activity above that relate to repair costs.

b$)$ Determine by means of the high and low method of cost analysis, the cost function for the repairs cost

c$)$ state the major problem involved in separating mixed costs into fixed and variable elements in practice