Ahmad owns a catering company, has gathered the following overhead cost information for the past six months:

Month	Labour Hours	Overhead cost
July	13,500	$23,400
August	13,200	23,500
September	14,100	26,000
October	15,100	28,300
November	15,300	28,200
December	14,800	27,500

Required:

1- Using the high-low method, determine the variable overhead cost per machine hour and the monthly fixed overhead cost. Estimate the total variable overhead costs and fixed overhead costs if 14600 labor hours are projected to be used next month.

2- Using the scatter diagram method, variable overhead cost per machine hour and the monthly fixed overhead cost. Estimate the total variable overhead costs and fixed overhead costs if 14600 labor hours are projected to be used next month. (You should use Excel to graph the data. Copy your chart and paste below)

3- Which Cost estimation method more accurate; the high low method or the scatter diagram method? Explain your answer.