• 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.
• 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?