Question 1 Harbour Inc. collected the following data for the first six months of the year concerning its overhead costs and machine hours used. Month Overhead Costs ($) Machine Hours Jan $62,000 400 Feb 52,000 320 Mar 64,000 395 Apr 58,000 350 May 57,000 350 June 54,000 325 Required - a) Harbour suspects that machine hours are driving overhead costs. Use the high-low method to calculate the: variable cost per machine hour; ii. monthly fixed cost. b) Harbour predicts that 375 machine hours will be used in July. Calculate the estimated overhead cost for July. Why is the high-low method inferior to the regression estimation method (provide 1 reason only)