PROBLEM 2-17 High-Low Method; Predicting Cost [LO3, L04] Echeverria SA is an Argentinian manufacturing company whose total factory overhead costs fluc- tuate somewhat from year to year according to the number of machine-hours worked in its produc- tion facility. These costs (in Argentinian pesos) at high and low levels of activity over recent years are given below: Level of Activity Low High 60,000 80,000 Machine-hours... Total factory overhead costs..... 274,000 pesos 312,000 pesos The factory overhead costs above consist of indirect materials, rent, and maintenance. The com- pany has analyzed these costs at the 60,000 machine-hours level of activity as follows: Indirect materials (variable) Rent (fixed)...... Maintenance (mixed). Total factory overhead costs 90,000 pesos 130,000 54,000 274,000 pesos