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 yeats are given below: Level of Activity Machine-hours Total factory overhead costs Low 64,000 $39,688,000 74,000 $42,108,000 The factory overhead costs above consist of indirect materials, rent, and maintenance. The company has analyzed these costs at the 64.000 machine hours level of activity as follows: Indirect materials (variable) Rent (fixed) Maintenance (mixed $12,288,000 21,100,000 6,380,000 Total factory overhead costs $39,688,000 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 $42,108,000 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 69.000 machine hours? Total factory overhead costs