Level of Activity
Direct labor-hours 72,300 96,400
Total factory overhead costs ¥287,140 ¥330,520
The factory overhead costs above consist of indirect materials, rent, and maintenance. The company has analyzed these costs at the 72,300-hour level of activity as follows:
Indirect materials (variable) ¥108,450
Rent (fixed) 124,000
Maintenance (mixed) 54,690
Total factory overhead costs
To have data available for planning, the company wants to break down the maintenance cost into its variable and fixed cost elements.
Estimate how much of the ¥330,520 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 ¥330,520 consists of indirect materials and rent. Think about the behavior of variable and fixed costs!) (Omit the "¥" sign in your response.)
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