Colby Limited is a manufacturing company whose total factory overhead costs fluctuate somewhat from year to year, according to the number of machine-hours worked in its production facility. These costs at high and low levels of activity over recent years are given below:

	Level of Activity
	Low			High
Machine-hours		61,500			81,500
Total factory overhead costs	$	34,589,500		$	39,049,500

The factory overhead costs above consist of indirect materials, rent, and maintenance. The company has analyzed these costs at the 61,500 machine-hours level of activity as follows:

Indirect materials (variable)	$	9,102,000
Rent (fixed)		17,200,000
Maintenance (mixed)		8,287,500
Total factory overhead costs	$	34,589,500

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 $39,049,500 at the high level of activity consists of maintenance cost.

Required: 1. Estimate how much of the factory overhead cost of $39,049,500 at the high level of activity consists of maintenance cost. 2. Using the high-low method, estimate a cost formula for maintenance. 3. What total overhead costs would you expect the company to incur at an operating level of 66,500 machine-hours