High-Low, Scattergraph, and Regression Analysis; Manufacturing Company. Woodworks, Inc., produces cabinet doors. Manufacturing overhead costs tend to fluctuate from one month to the next, and management would like to accurately estimate these costs for planning and decision-making purposes.
The accounting staff at Woodworks recommends that costs be broken down into fixed and variable components. Because the production process is highly automated, most of the manufacturing overhead costs are related to machinery and equipment. The accounting staff believes the best starting point is to review historical data for costs and machine hours:
	Reporting Period (Month)	Machine Hours	Total Costs
	January	1,550	278,000
	February	1,570	280,000
	March	1,115	266,000
	April	1,700	290,000
	May	1,110	262,000
	June	1,225	269,000
	July	1,335	275,000
	August	1,660	286,000
	September	1,000	250,000
	October	1,020	253,000
	November	1,025	260,000
	December	1,600	281,000

2. Use the regression slope / intercept formulas to develop the cost equation Y=f+vX. [Hint: Watch the video lecture on "mixed cost calculations" before you attempt this problem.] 3. Use the results of the high-low method and regression analysis to estimate costs for 1,500 machine hours. (You will have two different answers-one for each method.) Which approach do you think is most accurate and why? Which approach do you think is most accurate and why? 2. Use the regression slope / intercept formulas to develop the cost equation Y=f+vX. [Hint: Watch the video lecture on "mixed cost calculations" before you attempt this problem.] 3. Use the results of the high-low method and regression analysis to estimate costs for 1,500 machine hours. (You will have two different answers-one for each method.) Which approach do you think is most accurate and why? Which approach do you think is most accurate and why