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	62,200	82,200
Total factory overhead costs	$36,159,600	$40,519,600

The factory overhead costs above consist of indirect materials, rent, and maintenance. The company has analyzed these costs at the 62,200 machine-hours level of activity as follows:

Indirect materials (variable)	$9,019,000
Rent (fixed)	18,100,000
Maintenance (mixed)	9,040,600
Total factory overhead costs	$36,159,600

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 $40,519,600 at the high level of activity consists of maintenance cost. Maintenance cost $ 10,576,760 2. Using the high-low method, estimate a cost formula for maintenance. Y = 3. What total overhead costs would you expect the company to incur at an operating level of 67,200 machine-hours? Total factory overhead costs