The factory overhead costs above consist of indirect materials, rent, and maintenance. The company has analyzed these costs at the $73,000$ machine$-$hours level of activity as follows:

Indirect materials $($variable$)$ $ $12,337,000$

Rent $($fixed$)16,600,000$

Maintenance $($mixed$)9,003,000$

Total factory overhead costs $ $37,940,000$

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 $$42,740,000$ at the high level of activity consists of maintenance cost.

Maintenance Cost: $?$

$2.$ Using the high$$low method, estimate a cost formula for maintenance.

Y $=?+?$ X

$3.$ What total overhead costs would you expect the company to incur at an operating level of $78,000$ machine$-$hours?

Total factory overhead costs: $?$