Patrick Ross, the president of Ross's Wild Game Company, has asked for information about the cost ...

Patrick Ross, the president of Ross'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:

   Month   Machine-hours   Overhead Costs
February   1,700   $20,500
March   2,800   22,250
April   1,000   19,950
May   2,500   21,500
June   3,500   23,950

Required:
Using the high-low method, determine the overhead cost equation. Use machine-hours as your cost driver.