Q3. (25 marks) High-Low Method Canco Company is a very reputable in producing paddle boards for the last ten years. A manager of the production department collected the following information for the last six months: Months Machine Hours Operating costs July 8,000 $61,000 August 9,200 66,000 September 7,600 60,000 October 8,800 64,000 November 9,000 65,000 December 7.900 61,500 YORKVILLE WWW YORKVILLEL.CA Required: a. Determine the estimating cost function with machine-hours as the cost driver using the high-low method. (10 marks) b. if December's estimated machine-hours total 9,350, what is the estimated cost of the Production Department? (5 marks) C. What is the purpose of the high-low method? Explain briefly. (5 marks) d. Would you use this method in your business? Describe a situation when you would apply this method