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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 company has analyzed these costs at the 180,000 -hour level of activity as follows: V= variable; F= fixed; M= mixed To have data avallable for planning, the company wants to break the maintenance cost down into its variable and fixed cost 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 places.)

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