Colby Limited is a manufacturing company whose total factory overhead costs fluctuate somewhat from year to yeat, 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 Machine-hours Total factory overhead costs Level of activity Low 70,500 100, 500 $34,028,000 $40,500,000 The factory overhead costs above consist of indirect materials, rent, and maintenance. The company has analyzed these costs at the 70,500 machine-hours level of activity as follows: Indirect materials (variable) Rent (fixed) Maintenance (mixed) Total factory overhead costs $11,139,000 14,400,000 349,000 $34,028,000 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 $40,508,000 at the high level of activity consists of maintenance cost. 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 75,500 machine hours? Total factory overhead costs