Diamond Company's total overhead costs at various levels of activity are presented below:

	Machine hours	Total overhead costs
March	60,000	$216,800
April	50,000	194,000
May	70,000	239,600
June	80,000	262,400

Assume that the overhead costs above consist of utilities, supervisory salaries, and maintenance. At the 50,000-machine-hour level of activity, these costs are presented below:

Utilities (V)	$54,000
Supervisory salaries (F)	62,000
Maintenance (M)	78,000
Total overhead costs	$194,000

V = Variable, F = Fixed, M = Mixed The company wants to break down the maintenance cost into its basic variable and fixed cost elements.

Required:

1. Estimate the maintenance cost for June.
2. Use the high-low method to estimate the cost formula for maintenance cost.
3. Estimate the total overhead cost at an activity level of 55,000 machine hours, using the separate estimates you obtained for its components.