Question 3 Superior Limited's total overhead costs at various levels of activity are presented below: Month March April May June Machine Hours Total Overhead Costs 60,000 $216,800 50,000 194,000 70,000 239,600 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) Supervisory salaries (F) Maintenance (M) Total overhead costs $54,000 70,000 70,000 $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. (3 Marks)