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 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)		5,012,000
Maintenance (M)		2,262,000
Total factory overhead costs		12,334,000

V = variable; F = fixed; M = mixed.

To have data available for planning, the company wants to break the maintenance cost down into its variable and fixed cost elements.

3. What total factory overhead costs would you expect the company to incur at an operating level of 72,000 direct labour-hours? (Do not round intermediate calculations.)