Sawaya co., ltd., of japan is a manufacturing company whose total

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:

 

	Level of Activity
	Low				High
Direct labor-hours		50,000			75,000
Total factory overhead costs	$	14,250,000		$	17,625,000