Longberry Corporation Manufactures and Sells Party Items Let
a = Fixed Production Costs Per Month
B =

Multiple Choice

Longberry Corporation manufactures and sells party items. The following representative direct labor hours and production costs are provided for a four-month period: $\begin{array}{ccc}\text { Month } & \text { Direct Labor Hours } & \text { Production Costs }\\\hline\text { May } & 3,600 & \$ 15,000 \\\text { June } & 4,800 & 17,500 \\\text { July } & 6,000 & 20,000 \\\text { August } & 4,800 & 17,500 \\\text { Total } & 19,200 & \$ 70,000\end{array}$
Let
A = Fixed production costs per month
B = Variable production costs per direct labor hour
N = Number of months
X = Direct labor hours per month
Y = Total monthly production costs
S = Summation
Using the high-low method, what is the cost formula for estimating costs?

A) Total cost = $20,000 + $2.08X
B) Total cost = $7,500 + $2.08X
C) Total cost = $5,000 + 2.08X
D) Total cost = $2.08X