SAway Co., Ltd., of Japan, 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 labour-hours worked in the factory. Total factory overhead costs (in Japanese yen, denoted ) at high and low levels of activity for recent years are provided below: Level of Activity Low High Direct labour-hours 230,000 280,000 Total factory overhead costs 12,334,000 13,789,000 The factory overhead costs above consist of indirect materials, rent, and maintenance. The company has analyzed these costs at the 230,000-hour level of activity as follows: Indirect materials (V) 5,060,000 Rent (F)