Question $1$

Vieux Enterprise's total overhead costs at various levels of activity follow:

Assume that the total overhead costs consist of utilities, supervisory salaries, and maintenance. The breakdown of these costs at the $70,000$ machine$-$hour

level of activity is as follows:

$V=$ variable; $F=$ fixed; $M=$ mixed.

Vieux Enterprise's management wants to break the maintenance cost down into its basic variable and fixed cost elements.Question $1$

Vieux Enterprise's total overhead costs at various levels of activity follow:

Assume that the total overhead costs consist of utilities, supervisory salaries, and maintenance. The breakdown of these costs at the $70,000$ machine$-$hour level of activity is as follows:

$V-$ variable; $F-$ fixed; $M-$ mixed.

Vieux Enterprise's management wants to break the maintenance cost down into its basic variable and fixed cost elements.

variable and fixed costs!$)$

By means of the high$-$low method, estimate a cost formula for maintenance. $($Round the "Variable cost" to $2$ decimal places.$)$

Express the company's total overhead costs in the linear equation form $Y=a+bx.($Round the "Variable cost" to $2$ decimal places.$)$

What total overhead costs would you expect to be incurred at an operating activity level of $75,000$ machine$-$hours? At an operating activity level of $105,000$ machine$-$hours? $($Do not round intermediate calculations.$)$