11 Alwyn Company of the United States is a manufacturer whose total factory overhead costs fluctuate considerably from year to yearaccording to increases and decreases in the number of direct labour-hours worked in the factory. Total factory overhead costs (in USD)at high and low levels of activity for recent years are provided below:Direct labour-hoursTotal factory overhead costsIndirect materials (V)Rent (F)Maintenance (M)Total factory overhead costsThe factory overhead costs above consist of Indirect materials, rent, and maintenance. The company has analyzed these costs at the100,000-hour level of activity as follows:Maintenance costY=V = varlable; F = fixed; M = mixed.To have data available for planning, the company wants to break the maintenance cost down into its variable and fixed cost elements.Required:1. Estimate how much of the $16,900,000 factory overhead cost at the high level of activity consists of maintenance cost. (Hint: To dothis, it may be helpful to first determine how much of the $16,900,000 consists of Indirect materials and rent. Think about thebehaviour of varlable and fixed costs!)Answer is complete and correct.3,680,000$ 1,947,200 +Level of ActivityLow100,000¥13,490,0002. By means of the high-low method of cost analysis, estimate a cost formula for maintenance. (Round the "Variable cost" to 2decimal places.)¥4,600,0005,860,0003,030,000¥13,490,000Answer is complete but not entirely correct.$1,947,200.00Total factory overhead costsHigh160,000¥16,900,0003. What total factory overhead costs would you expect the company to incur at an operating level of 72,400 direct labour-hours? (Donot round Intermediate calculations.)Answer is complete but not entirely correct.$ 10,389,812

The production cost comprise variable, fixed and mixed costs. The variable and fixed costs elements…

Alwyn Company of the United States is a manufacturer whose total factory overhead costs fluctuate considerably from year to year according to increases and decreases in the number of direct labour-hours worked in the factory. Total factory overhead costs (in USD) at high and low levels of activity for recent years are provided below: Direct labour-hours Total factory overhead costs Level of Activity Low 100,000 ¥13,490,000 High 160,000 ¥16,900,000 The factory overhead costs above consist of Indirect materials, rent, and maintenance. The company has analyzed these costs at the 100,000-hour level of activity as follows: Indirect materials (V) Rent (F) Maintenance (M) Total factory overhead costs V = variable; F = fixed; M = mixed. To have data available for planning, the company wants to break the maintenance cost down into its variable and fixed cost elements. Required: ¥4,600,000 5,860,000 3,030,000 ¥13,490,000