Question: can you please help me with part 2 and 3 Return to question Colby Limited is a manufacturing company whose total factory overhead costs fluctuate

can you please help me with part 2 and 3
can you please help me with part 2 and 3 Return to
question Colby Limited is a manufacturing company whose total factory overhead costs
fluctuate somewhat from year to year, according to the number of machine-hours

Return to question Colby Limited is a manufacturing company whose total factory overhead costs fluctuate somewhat from year to year, according to the number of machine-hours worked in its production facility. These costs at high and low levels of activity over recent years are given below: Level of Activity LOW Machine-hours High 82,700 Total factory overhead costs 72,700 $33,964,100 $36,294,100 The factory overhead costs above consist of indirect materials, rent, and maintenance. The company has analyzed these costs at the 72,700 machine-hours level of activity as follows: Indirect materials (variable) Rent (fixed) $12,940,600 13,200,000 7,823,500 $33,964,100 Maintenance (mixed) Total factory overhead costs For planning purposes, the company wants to break down the maintenance cost into its variable and fixed cost elements Required: Required: 1. Estimate how much of the factory overhead cost of $36,294,100 at the high level of activity consists of maintenance cost Answer is complete and correct. Maintenance cost $ 8,373,500 2. Using the high-low method, estimate a cost formula for maintenance. Answer is complete but not entirely correct. 55 $ 8,373,500 3. What total overhead costs would you expect the company to incur at an operating level of 77,700 machine-hours? Answer is complete but not entirely correct. Total factory overhead costs $ 3,825,000

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