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 Machine-hours Total factory overhead costs Low 73,000 $37,940,000 High 93,000 $ 42,740,000 The factory overhead costs above consist of indirect materials, rent, and maintenance. The company has analyzed these costs at the 73,000 machine-hours level of activity as follows: Indirect materials (variable) Rent (fixed) Maintenance (mixed) $12,337,000 16,600,000 9,003,000 Total factory overhead costs $37,940,000 For planning purposes, the company wants to break down the maintenance cost into its variable and fixed cost elements. 2. Using the high-low method, estimate a cost formula for maintenance. Y= 60 3. What total overhead costs would you expect the company to incur at an operating level of 78,000 machine-hours? Total factory overhead costs