Trevor Chappelli,the CEO of Chappelli's Wild Game Company,has Asked for Information

Essay

Trevor Chappelli,the CEO of Chappelli's Wild Game Company,has asked for information about the cost behaviour of manufacturing overhead costs.Specifically,he wants to know how much overhead cost is fixed and how much is variable.The following data are the only records available:
$$\begin{array} { l c c } \text { Month } & \text { Machine-hours } & \text { Overhead Costs } \\\text { February } & 1700 & \$ 20500 \\\text { March } & 2800 & 22250 \\\text { April } & 1000 & 19950 \\\text { May } & 2500 & 21500 \\\text { June } & 3500 & 23950\end{array}$$
Required:
Using the high-low method,determine the overhead cost equation.Use machine-hours as your cost driver.
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