Academy Products manufactures a variety of custom components for use in aircraft navigation and communications systems. The controller has asked for your help in estimating fixed and variable overhead costs for Academy's Rio Puerco plant. The controller tells you that the best cost driver for estimating overhead is machine-hours. Monthly data on machine-hours and overhead costs for the last year have been collected and are shown as follows. Overhead Costs Month Machine-Hours 1 680,000 $ 672,000 2 950,000 2,220,000 3 790,000 1,270,000 4 715,000 830,000 5 1,060,000 3,750,000 6 850,000 1,450,000 7 775,000 1,150,000 840,000 1,550,000 9 985,000 2,550,000 10 705,000 11 12 740,000 750,000 890,000 1,030,000 960,000 Required: a. Estimate the monthly fixed costs and the unit variable cost per machine-hour using the high-low estimation method. (Round variable cost per unit to 1 decimal place.) Required: a. Estimate the monthly fixed costs and the unit variable cost per machine-hour using the high-low estimation method. (Round variab cost per unit to 1 decimal place.) Overhead costs per MH Machine hour b. Draw a scattergraph relating overhead costs to the number of machine-hours. Instructions: 1. Click on a point to the right of the graph. 2. Click within the graph to place the point. 3. To enter exact coordinates, click on the point and then click on the processing wheel symbol and then enter the exam coordinates in the dialog box that pops up, 4. Click OK. $4,100,000 $3,600,000- $3,100,000- Overhead Costs SE100,000- $2600,000 $1,600,000- High-Low Method, Scattergraph Academy Products Month 1 Month 2 Month 3 Month 4 Month 5 $1,100,000- Month 6 $600,000+ 650,000 750,000 850,000 950,000 1,050,000 600,000 700,000 800,000 900,000 1,000,000 1,100,000 Month 7 Machine Hours reset