(6 Marks) Question 2 John Williams, the Cost Accountant of ABC Company, collected the following information concerning the operations of the Machining Department Observation Machine hours Total Operating Costs $56,000 June July August September October 5,000 6,500 5,200 4,800 4,200 71,600- 59,300 56,000 54,500 Required: a) Use the high-low method to determine the estimating cost function with machine hours as (3 marks) the cost driver 171007.3 23SO0 b) If Novembers estimated machine-hours total 4,500, what are the total estimated costs of the Machining Department? (1 mark) c) Consider variable operating cost per machine hour "b" calculated above. If it takes four machine hours to produce one unit and total 1,800 units are produced, then calculate total variable operating cost (1 mark) ) How high-low method is different from regression method? and what is the main advantage of using the high-low method for cost estimation? (1 mark) On regesssion showshe relat io te relat to show s