Abbott Lamp Corporation manufactures Mountain Dew Lamps. Abbott Lamp Corporation has the following historical cost behavior data:

Year	Total Direct Labor Hours	Total Utilities	Total Indirct Labor	Total Indirct Materials	Total Mixed OH costs
2014	100	$125	$400	$175	$700
2015	150	$175	$550	$225	$950
2016	200	$225	$700	$275	$1,200
2017	350	$375	$1,150	$425	$1,950

Other 2018 estimated information is as follows:

Rent on production facility $100

Factory supervisor salary $100

Depreciation on factory equipment $200

Rent on corporate headquarters $300

Corporate HQ salaries $1,000

Total $1,700

Abbott Lamp also estimates the following with regard to direct materials and direct labor:

Direct Materials:

1 mountain can/mountain dew lamp @ $2/mountain dew can;

.25 pieces of paper/mountain dew lamp @$4/piece of paper;

Direct Labor

.2 dlh/mountain dew lamp @ $10/dlh

1. Estimate the VARIABLE predetermined overhead rate using the high-low method. Using the high-low method, what does the y-intercept mean in this case? Please answer number 2 question below and confirm calculation for Question 1 is correct.

   Variable predetermined overhead rate: ($1950-$700)/(350dlh-100dlh)
   				$1250/250=$5.00dlh
   				$1950-($5.00dlh)*(350dlh)
   				$1950-$1750= $200
   Now, this predicts that for every dlh we incur, utilities will increase by $5.00.

2. Using your answer from 1 above (using BOTH the VPDOH and the y-intercept), compute the breakeven point in terms of total # of mountain dew lamps that need to be sold to break even. Assume that the price per Mountain Dew Lamp is $20/mountain dew lamp and that capacity is NOT an issue.