Answer the Following Questions Using the Information Below:
Uninder Company

Multiple Choice

Answer the following questions using the information below:
Uninder Company uses the high-low method to estimate the cost function. The information for 2015 is provided below:
$\begin{array}{lll}&\text { Machine-hours } & \text { Labor Costs }\\\text { Highest observation of cost driver } & 550 & \$ 22,000 \\\text { Lowest observation of cost driver } & 250 & \$ 13,000\end{array}$
-What is the constant for the estimated cost equation?

A) $5,500
B) $13,000
C) $16,500
D) $22,000