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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

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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 The factory overhead costs above consist of indirect materials, rent, and maintenance. The compary has analyzed these costs at the 97,000-hour level of activity as follows: V= variable, F= fixed, M= mixed. To have data avatable for planning. the company wants to break the maintenance cost down into its variable and fixed cost elements Required: 1. Estimate how much of the 15,251,000 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 15,251,000 consists of indirect materials and rent. Think about the behaviour of variable and fixed costs!) Required: 1. Estimate how much of the $15,251,000 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 15,251,000 consists of indirect materials and rent. Think about the behaviour of variable and fixed costs? 2. By means of the high-low method of cost analysis, estimate a cost formula for maintenance. (Round the "Variable cost" to 2 decimal ploces.) 3. What total factory overhead costs would you expect the company to incur at an operating level of 67,000 direct labour-hours? (Do not round intermediate calculations.) 2. By means of the high-low method of cost analysis, estimate a cost formula for maintenance. (Round the "Voriable cost" to 2 decimal places.) 3. What total factory overhead costs would you expect the company to incur at an operating level of 67,000 direct labour-hours? (Do not round intermediate calculations.)

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