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:

The factory overhead costs above consist of indirect materials, rent, and maintenance. The company has analyzed these costs at the

$60,500$ machine$-$hours level of activity as follows:

For planning purposes, the company wants to break down the maintenance cost into its variable and fixed cost elements.

Required:

Estimate how much of the factory overhead cost of $$38,139,000$ at the high level of activity consists of maintenance cost.

Using the high$-$low method, estimate a cost formula for maintenance.

$Y=$

What totaloverhead costs would you expect the company to incur at an operating level of $65,500$ machine$-$hours?