Hartman Company's Lucas plant manufactures thermostatic controls. Plant management has experienced fluctuating monthly overhead costs and wants to estimate overhead costs accurately to plan its operations and its financial needs. Interviews with plant personnel and studies reported in trade publications suggest that overhead in this industry tends to vary with labor-hours A member of the controller's staff proposed that the behavior pattern of these overhead costs be determined to improve cost estimation Another staff member suggested that a good starting place for determining cost behavior patterns is to analyze historical data. Following this suggestion, monthly data were gathered on labor-hours and overhead costs for the past two years. No major changes in operations occurred over this period of time. The data are shown in the following table Labor-Hours 251,570 238,470 192,700 271,350 323,850 290,970 271,350 251,590 231,925 343,500 185,970 231,920 382,840 376,350 290,960 395,970 356,590 323,790 389,415 317,220 343,480 336,910 382,850 376,290 Month Overhead Costs $ 2,741,320 2,375,280 2,400,200 2,590,790 3,071,870 2,618,220 2,480,290 2,745,610 2,821,400 3,437,760 2,273,390 2,550,730 3,603,770 3,404,840 3,016,550 3,638,390 3,553,950 3,191,670 3,481,770 3,219,570 3,495,480 3,207,310 3,600,680 3,636,700 2 4 5 6 7 8 12 13 17 20 23 24 Required a. Use the high-low estimation method to estimate the overhead cost behavior (fixed and variable portions components of cost) for the Lucas plant. (Round variable cost per unit to 2 decimal places and fixed cost to the nearest whole dollar.) Overhead Costs !=?$ 1,064,585+?$ 6.50 per LH Labor hours