1.	Using the high low method, calculate the fixed cost component of overhead and the variable rate per machine hour.
2.	Estimate the expected cost for overhead in September assuming that 14,500 hours of machine hours are used in the month.
3.	Give one specific example of a cost that might be included in the variable cost you calculated above.

Patel Manufacturing makes snow shovels. The company's controller has recorded total overhead costs for an eight month period. To help him understand how costs behave in the company's manufacturing process he wants to separate fixed from variable costs. Data for the past eight months are as follows: Month Overhead Machine Cost Hours January $1,965 13,077 February $2,066 14,136 March $2,241 15,727 April $2,488 18,073 May $2,490 18,000 June $2,205 16,707 July $2,010 13,820 August $1,815 11,955