Question 3 ABC Company's total overhead costs at various levels of activity are presented below: Total Overhead Month Machine Hours Costs March 60.000 $216,800 April 50,000 194.000 May 70,000 239,600 June 80.000 262,400 Assume that the overhead costs above consist of utilities, supervisory salaries, and maintenance. At the 50,000 machine-hour level of activity these costs are: Utilities (V) $54,000 Supervisory salaries (F) 70,000 Maintenance (M) 70.000 Total overhead costs $194.000 V = Variable; F = Fixed; M = Mixed The company wants to break down the maintenance cost into its basic variable and fixed cost elements. Required: a. Estimate the maintenance cost for June. (3 Marks) b. Use the high-low method to estimate the cost formula for maintenance cost. (4 Marks) c. Estimate the total overhead cost at an activity level of 55,000 machine hours