CNC Corporation has provided the following data to determine a cost formula linking overhead cost and units

produced:

Month Units Produced Overhead Costs

January 1,800 $14,700

February 1,900 15,200

March 1,700 13,700

April 1,600 14,000

May 1,500 14,300

June 1,300 13,100

July 1,100 12,800

August 1,500 14,600

Required (5 marks)

a. Based on the high-low method of analysis, what is the cost function (linear equation formula) for the

overhead costs as a function of units produced? (3 marks)

b. If September's estimated units produced are 1,400, what are the estimated overhead costs? (2 marks)