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Help solving please Susumi Corporation of Japan is a manufacturing company whose total factory overhead costs fluctuate considerably from year to year according to increases
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Susumi Corporation of Japan is a manufacturing company whose total factory overhead costs fluctuate considerably from year to year according to increases and decreases in the number of direct labor-hours worked in the factory. Total factory overhead costs (in Japanese yen, denoted by yen) at high and low levels of activity for 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 4, 000-hour level of activity as follows: To have data available for planning, the company wants to break down the maintenance cost into its variable and fixed cost elements. Required: Estimate how much of the yen 17.625, 000 factory overhead cost at the high level of activity consists of maintenance cost. Using the high-low method of cost analysis, estimate a cost formula for maintenance. What total factory overhead costs would you expect the company to incur at an operating level of 4, 800 direct labor-hours Step by Step Solution
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