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 Direct labor-hours 45,600 60,800 Total factory overhead costs $ 234,300 $ 257,100 The factory overhead costs above consist of indirect materials, rent, and maintenance. The company has analyzed these costs at the 45,600-hour level of activity as follows: Indirect materials (variable) $ 59,280 Rent (fixed) 139,000 Maintenance (mixed) 36,020 Total factory overhead costs $ 234,300 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 $257,100 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 $257,100 consists of indirect materials and rent. Think about the behavior of variable and fixed costs!) (Do not round intermediate calculations.)

2. Using the high-low method, estimate a cost formula for maintenance. (Do not round intermediate calculations. Round "Variable cost element" to 2 decimal places.)

3. What total factory overhead costs would you expect the company to incur at an operating level of 50,160 direct labor-hours? (Do not round intermediate calculations.)