$10)$ Selected data about Pitkin Company's manufacturing operations at two levels of activity are presented below:

Number of Units Produced $10,00016,000$

Total Manufacturing Costs $$157,000$ $$250,000$

Direct Material Cost per Unit $$5$ $$5$

Direct Labour Cost per Unit $$7$ $$7$

Required:

A$.$ Using the high$-$low method, estimate the cost formula for manufacturing overhead. Assume that both direct material and direct labour are variable costs. $(3$ pts$)$