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Sawaya Co., Ltd., of Japan, is a manufacturing company whose total factory overhead costs fluctuate considerably from year to year Japanese yen, denoted $ )
Sawaya Co., Ltd., of Japan, is a manufacturing company whose total factory overhead costs fluctuate considerably from year to year 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 company has analyzed these costs at the 90,000 hour level of activity as follows: v= variadie; 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 element Required: . Estimate how much of the 15,185,000 factory overhead cost at the high level of activity consists of maintenance cost. (Hint To do his, it may be helpful to first determine how much of the 15,185,000 consists of indirect materials and rent. Think about the behavi
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