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Mansah Co., Ltd., of Ghana is a manufacturing company whose total factory overhead costs fluctuate considerably from year to year according to increases and decreases
Mansah Co., Ltd., of Ghana 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 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 58, 500-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 $353,000 factory overhead cost at the high level of activity consists of maintenance cost. (Do not round intermediate calculations.)
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