View the step-by-step solution to: Sawaya Co., Ltd., of Japan is a manufacturing company whose total

Sawaya Co., Ltd., of Japan is a manufact...
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 (in Japanese yen, denoted ¥) at high and low levels of activity for recent years are given below:

Level of Activity
Low High
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
¥287,140

To have data available for planning, the company wants to break down the maintenance cost into its variable and fixed cost elements.

Requirement 1:
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.)

Why Join Course Hero?

Course Hero has all the homework and study help you need to succeed! We’ve got course-specific notes, study guides, and practice tests along with expert tutors and customizable flashcards—available anywhere, anytime.

-

Educational Resources
  • -

    Study Documents

    Find the best study resources around, tagged to your specific courses. Share your own to gain free Course Hero access or to earn money with our Marketplace.

    Browse Documents
  • 890,990,898

    Question & Answers

    Get one-on-one homework help from our expert tutors—available online 24/7. Ask your own questions or browse existing Q&A threads. Satisfaction guaranteed!

    Ask a Question
  • 890,990,898

    Flashcards

    Browse existing sets or create your own using our digital flashcard system. A simple yet effective studying tool to help you earn the grade that you want!

    Browse Flashcards