Using the High-Low Method, calculate the variable rate:

Using the High-Low Method, calculate the Fixed Cost:

Using the Method of Least Squares, calculate the variable rate:

Using the Method of Least Squares, calculate the Fixed Cost:

Lake Balboa Manufacturing Company decides to relate total factory overhead costs to direct labor hours (DLH) to develop a cost-volume formula in the form of y = a + bx. Observations from 2019 are collected. They are given and on the excel file. Month January February March April May Direct Labor Hours 9,000 19,000 11,000 14,000 23,000 12,000 12,000 22,000 7,000 Factory Overhead 13,000 20,000 14,000 16,000 25,000 20,000 20,000 23,000 June July August September October 13,000 November December 15,000 17,000 174,000 hours 14,000 22,000 18,000 18,000 $225,000 Total