James Company’s total overhead costs at various levels of activity are presented

James Company’s total overhead costs at various levels of activity are presentedbelow:MachineMonthHoursSeptembe 113,00r0October85,000156,00November0162,60December0TotalOverheadCost$750,650$612,050$963,500$996,170Assume that the overhead cost above consists of utilities, supervisory salaries,depreciation, and maintenance. The breakdown of these costs at the 85,000machine-hour level of activity in October is as follows:Utilities(variable)Supervisorysalariesanddepreciation(fixed)Maintenance(mixed)Totaloverhead cost$ 221,000149,000242,050$ 612,050The company wants to break down the maintenance cost into its variable and fixedcost elements.Required:1. Estimate how much of the $996,170 of overhead cost in December wasmaintenance cost. (Hint: To do this, first determine how much of the $996,170consisted of utilities and supervisory salaries. Think about the behaviour ofvariable and fixed costs within the relevant range.) (Do not round intermediatecalculations.)2. Using the high–low method, estimate a cost formula for maintenance. (Roundvariable cost to 2 decimal places and fixed cost to the nearest dollaramount.)3. Express the company’s total overhead cost in the form Y = a + bX. (Roundvariable cost to 2 decimal places and fixed cost to the nearest dollaramount.)4. What total overhead cost would you expect to be incurred at an activity level of95,000 machine-hours?(Do not round intermediate calculations.)