$.$ Problem $3-17$ High$-$Low Method; Predicting Cost $[$LO$1,$ LO$2]\_15$ marks

Colby Limited is a manufacturing company whose total factory overhead costs fluctuate somewhat from year to year, according to the number of machine$-$hours worked in its production facility. These costs at high and low levels of activity over recent years are given below:

$\backslash$table$[[,$Level of Activity$],[\backslash$table$[[$Machine$-$hours$],[92\mathrm{.}000]],82,000],[\backslash$table$[[$Total factory overhead costs$],[$$$37,380,000$