Homework Saved Help Save & Exit Academy Products manufactures a variety of custom components for use in aircraft navigation and communications systems. The controller has asked for your help in estimating fixed and variable overhead costs for Academy's Rio Puerco plant. The controller tells you that the best cost driver for estimating overhead is machine-hours. Monthly data on machine-hours and overhead costs for the last year have been collected and are shown as follows. Overhead Costs $ 699,000 2,240,000 1,290,000 850,000 3,770,000 Month Machine-Hours 1 700,000 2 970,000 3 800,000 4 735,000 5 1,070,000 6 870,000 1,470,000 7 785,000 1,170,000 tes: 8 850,000 1,570,000 9 1,005,000 2,570,000 10 715,000 910,000 11 12 750,000 770,000 1,050,000 980,000 Required: a. Estimate the monthly fixed costs and the unit variable cost per machine-hour using the high-low estimation method. (Round variable cost per unit to 1 decimal place.) Overhead costs per MH Machine hour < Prev 3 of 4 Next > er 5 Homework ook int Saved Help b. Draw a scattergraph relating overhead costs to the number of machine-hours. Instructions: 1. Click on a point to the right of the graph. 2. Click within the graph to place the point. 3. To enter exact coordinates, click on the point and then click on the processing wheel symbol and then enter the exact coordinates in the dialog box that pops up. 4. Click OK. ences $4,100,000- $3,000,000- $3,100,000 Overhead Costs 3 000,000 100,000- $1,000,000- $1100.000- High-Low Method, Scattergraph Academy Products Month 1 Month 2 Month 3 Month 4 Month 5 < Prev 3 of 4 Next >