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

Month

Machine Hours

Total Overhead CostSeptember112,200$ 708,076October85,400$ 592,032November150,900$ 875,647December156,000$ 897,730Assume that the overhead cost above consists of utilities, supervisory salaries, depreciation, and maintenance. The breakdown of these costs at the 85,400-machine-hour level of activity in October is as follows:Utilities (variable) $ 196,420Supervisory salariesand depreciation (fixed)178,000Maintenance (mixed)217,612Total overhead cost $ 592,032

The company wants to break down the maintenance cost into its variable and fixed cost elements.

Required:

A) Estimate how much of the $897,730 of overhead cost in December was maintenance cost.B) Using the high-low method, estimate a cost formula for maintenance. C) What total overhead cost would you expect to be incurred at an activity level of 95,400 machine-hours? Hint: Before you do so, express the company's total overhead cost in the form Y = a + bX.