4. Pavot Industries manufactures handcrafted furniture. The accountant is attempting to gain control of the overhead costs. Because the furniture is crafted by hand, direct labour hours are used to apply the overhead. The accountant has gathered the following data relating to direct labour hours and total overhead costs for a six-year period Direct labour hours Total factory overhead costs $297,000 $276,000 $262,500 $288,000 $254,250 20X2 46,800 36,000 40,800 48,000 45,000 20X3 20X4 20X5 20X6 Total factory overhead consists of supervisory salaries, which are fixed at $195,000, and utilities costs, which are mixed. Using the high-low method, which of the following is the correct cost formula for utilities costs? a) Y-45,000(1.00 x quantity) b) Y--814,500 (23.75 x quantity) C) Y 118,000 (3.54 x quantity) d) Y 240,000 (1.00 x quantity)