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: Machine-hours Total factory overhead costs Level of activity LOW High 74,000 94,000 $42,877,000 $47,837,000 The factory overhead costs above consist of indirect materials, rent, and maintenance. The company has analyzed these costs at the 74,000 machine-hours level of activity as follows: Indirect materials (variable) Rent (fixed) Maintenance (mixed) Total factory overhead coats $12, 432,000 19,500,000 10,945,000 $42,877,000 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 $47,837,000 at the high vidvel of activity consists of maintenance cost. Answer is complete and correct. Maintenance cool S 12,545,000 2. Using the high-low method, estimate a cost formula for maintenance. Answer is complete and correct. $ 5,025,000 3. What total overhead costs would you expect the company to incur at an operating level of 79,000 machine-hours? Answer is complete but not entirely correct. Total factory overhead coats $ 43,717,000 3