Question 01: Ahmed, managing director of the National Manufacturing Company, is examining how overhead costs behave with changes in monthly produced kilograms. Assume the following historical data: Total Overhead Costs Kilograms Produced $160,000 300 180,000 400 200,000 500 220,000 600 260,000 800 300,000 1,000 Required: 1. Develop the linear cost function using the High-Low Method. 2. What would be the predicted total overhead costs for producing (a) 700 units and (b) 1500 units using the cost function estimated in requirement 1? 3. Ahmed had a chance to learn and reduce the labor cost from doubling the number of units from 1 that requires 300 hours to 2 units and to 4 units. Suppose the learning curve is 70%, compute the labor cost of the two batches based on the reduction of time in performing the job. Given the average cost per hour is $40.