Below are the overhead costs and labor hours for Smith & Co.

Month	Overhead Cost	# of labor hours
	January		$9,640			490
	February		$12,680			680
	March		$11,080			580
	April		$11,720			620
	May		$13,000			700
	June		$10,120			520
	July		$8,840			440
	August		$6,600			300

Required:

Using the high-low method:

1. Calculate the fixed cost of overhead. $

2. Calculate the variable rate per labor hour. $

3. Construct the cost formula for total overhead cost.

Total cost	=	Fixed cost	+	Variable cost
	=	$	+	($per hour X labor hours)

4. The company is estimating that in September the labor hours will be 600. How much should they estimate to have in total overhead cost for September? $