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I'm stuck. Also am I correct? Colby Limited is a manufacturing company whose total factory overhead costs fluctuate somewhat from year to year, according to

I'm stuck. Also am I correct?

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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 Low High Machine-hours 61, 500 81,500 Total factory overhead costs $34,589,500 $39,049,500 The factory overhead costs above consist of indirect materials, rent, and maintenance. The company has analyzed these costs at the 61,500 machine-hours level of activity as follows: Indirect materials (variable) $ 9 , 102 , 000 Rent (fixed) 17,200,000 Maintenance (mixed) 3, 287, 500 Total factory overhead costs $34 , 5 B9 , 500 For planning purposes, the company wants to break down the maintenance cost into its variable and xed cost elements. Required: 1. Estimate how much of the factory overhead cost of $39,049,500 at the high level of activity consists of maintenance cost. 2. Using the highlow method, estimate a cost formula for maintenance. $ 3,675,000 3. What total overhead costs would you expect the company to incur at an operating level of 66,500 machine-hours

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