8. 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: High Direct labor-hours Total factory overhead costs Level of Activity Low 51,300 6 8,400 $ 239,050 $ 264,700 The factory overhead costs above consist of indirect materials, rent, and maintenance. The company has analyzed these costs at the 51,300-hour level of activity as follows: $ Indirect materials (variable) Rent (fixed) Maintenance (mixed) 66,690 131,000 41,360 Total factory overhead costs $ 239,050 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 $264,700 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 $264,700 consists of indirect materials and rent. Think about the behavior of variable and fixed costs!) (Do not round intermediate calculations.) 2 Using the high-low method, estimate a cost formula for maintenance, (Do not round intermediate calculations.) 3 What total factory overhead costs would you expect the company to incur at an operating level of 56,430 direct labor-hours? (Do not round intermediate calculations.)