Sawaya 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 labor-hours worked in the factory. Total factory overhead costs at high and low levels of activity for recent years are given below: Level of Activity Low High 72.000 96,000 $ 317,200 $ 367,600 Direct labor-hours Total factory overhead costs The factory overhead costs above consist of indirect materials, rent, and maintenance. The company has analyzed these costs at the 72,000-hour level of activity as follows: Indirect materials (variable) Rent (fixed) Maintenance (mixed) Total factory overhead costs $ 108,000 136,000 73,200 $ 317,200 To have data available for planning, the company wants to break down the maintenance cost into its variable and fixed cost elements Required: 1. Estimate how much of the $367,600 factory overhead cost at the high level of activity consists of maintenance cost. (Hint: To do this, it may be helpful to first determine how much of the $367,600 consists of indirect materials and rent. Think about the behavior of variable and fixed costs!) (Do not round intermediate calculations.) Maintenance cost at high level of activity 2. Using the high-low method, estimate a cost formula for maintenance. (Round the Variable cost per DLH to 2 decimal places.) Direct Labor- Maintenance Hours Cost High level of activity Low level of activity Change 01$ Variable cost element Fixed cost element per DLH 3. What total factory overhead costs would you expect the company to incur at an operating level of 79,200 direct labor-hours? (Do not round intermediate calculations.) Total factory overhead cost