Patrick Ross, the president of M & M Materials Company, has asked for information about the cost behavior 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:

MonthMachine-hoursOverhead Costs

February1,870$22,500

March3,080 24,475

April 11 ,10024,321

May 2,75023,650

June3,85031,196

Required:

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