Sawaya Co., ltd., of japan is a manufacuring company whose total factory overhead costs fluctuate

value: 2.50 points 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 63,600 84,800 $ 300,620 $347,260 Direct labor-hours Total factory overhead costs The factory overhead costs above consist of indirect materials, rent, and maintenance. The company has analyzed these costs at the 63,600-hour level of activity as follows: Indirect materials (variable) Rent (fixed) Maintenance (mixed) $ 114,480 126,000 60,140 Total factory overhead costs $ 300,620 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 $347,260 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 $347,260 consists of indirect materials and rent. Think about the behavior of variable and fixed costs!) (Do not round Intermediate calculations.) Maintenance cost at high level of activity $ 68,620 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.) High level of activity Low level of activity Change Direct Labor Hours 84,800 63,600 21,200 Maintenance Cost $ 106,780 60,140 $ 46,640 $ Variable cost element Fixed cost element s 2.20 per DLH 117,940 117,940 + $ 2.20 3. What total factory overhead costs would you expect the company to incur at an operating level of 69,960 direct labor-hours? (Do not round intermediate calculations.) Total factory overhead cost