t-Fall 2020 0 Colby Limited is a manufacturing company whose total factory overhead costs fluctuate somewhat from yo number of machine-hours worked in its production facility. These costs at high and low levels of activity over recen below Level of Activity Machine-hours Total factory overhead costs LON 64,000 $39,688,000 High 74,000 $42,185,000 The factory overhead costs above consist of indirect materials, rent, and maintenance. The company has analyzed these che 64,000 machine-hours level of activity as follows: Indirect materials (variable) Rent (fixed) Maintenance (mixed) $12,288,000 21,100,000 6,300,000 Total factory overhead costs $39,688,000 For planning purposes, the company wants to break down the maintenance cost into its variable and fixed cost elements. Required 1. Estimate how much of the factory overhead cost of $42,108,000 at the high level of activity consists of maintenance cost. Required: 1. Estimate how much of the factory overhead cost of $42,108,000 at the high level of activity como mantence cost Menance cost 2. Using the high-low method, estimate a cost formula for maintenance. YE 1. What total overhead costs would you expect the company to incur at an operating level of 69.000 machine hours? ryhet conta