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 lovu.r levels of activity over recent years are given below: Level of Activity Low High Machinehours 56,668 35,666 Total factoryr overhead costs $14,256,668 $1?,625,666 The factory overhead costs above consist of indirect materials, rent, and maintenance. The company has analyzed these costs at the 50,000 machinehours level of activity as follows: Indirect materials (variable) 1. 5,668,666 Rent (fixed) 6,668,666 Maintenance (mixed) 3,258,666 Total factory overhead costs $14,258,660 For planning purposes, the company wants to break clown the maintenance cost into its variable and xed cost elements. Required: 1. Estimate how much of the factory overhead cost of $12625,000 at the high level of activity consists of maintenance cost. {Hint First determine how much of the $17,625,000 cost consists of indirect materials and rent. Think about the behaviour of variable and fixed costs.) (Do not round intermediate calculations.) 5: 115250110 2. Using the highlow method, estimate a cost formula for maintenance. {Round variable cost to 1 decimal place and fixed cast to the nearest dollar amount} -:-:- 3. What total! overhead costs would you expect the company to incur at an operating level of 707000 machine-hours? {Do not round intermediate calculations.) CRAZY CANUCKS Income Statement-Crazy Canucks For the Month Ended January 31 Sales $ 300,000 Cost of goods sold 180, 000 Gross margin 120, 005 Selling and administrative expenses: Selling expenses $60, 000 Administrative expenses 20, 090 80,000 Operating income $ 40,000Variable expenses: Fixed expenses: 1 For every pair of skis sold during January, what was the contribution toward covering xed expenses and toward earning profits? __ 3. What 1would the total contribution margin be in a month where 150 pairs of skis were sold