A company has assembled the following actual data pertaining to certain costs that cannot be easily identified as either fixed or variable for the six months ended June 30:

Month	Cost	Machine-hours
January	$27,000	5,250
February	$25,900	5,500
March	$36,400	7,500
April	$46,620	9,750
May	$45,000	9,500
June	$40,000	8,200

Utilizing the above information, identify below the solutions to the following requirements:

1. Use the high-low method to estimate the cost function equation pertaining to the six months of data above. Show all work, and clearly label your solutions to "A" and "b" in the equation "Y = A + bx".

2. The company anticipates incurring 8,750 machine hours during July, 201X. Utilizing the cost function equation created in requirement 1 determine the estimated total cost that the company can expect to incur at that level of activity.