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 Academys 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 below,

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 4 decimal places.)

Month	Machine-Hours			Overhead Costs
1		630,000		$	660,000
2		900,000			2,170,000
3		765,000			1,220,000
4		665,000			780,000
5		1,035,000			3,700,000
6		800,000			1,400,000
7		750,000			1,100,000
8		815,000			1,500,000
9		935,000			2,500,000
10		680,000			840,000
11		715,000			980,000
12		700,000			910,000