QUESTION 1 Treetop Company recorded the following information concerning its Manufacturing Overhead costs and machine hours. The president has asked you to determine the relationship between the two so that future costs can be predicted based on the cost equation. Required: a. Using the high-low method, determine the fixed costs and the variable rate by using the formula Total Costs = Fixed Costs + (variable rate x units) or Y=a+bX Answer Variable Rate Fixed Costs 6. Management is predicting that in January 2016, the machine hours will be 550 hours Based on your work above, the total Manufacturing Overhead costs for January 2016 (total of Fixed - Variable for January 2016) will be on Completion Status: b. Management is predicting that in January 2016, the machine hours will be 550 hours. Based on your work above, the total Manufacturing Overhead costs for January 2016 (total of Fixed + Variable for January 2016) will be Month January February March April May June July August September October November December Number of Machine Hours Manufacturing Overhead Costs 341 $524,908 402 1542,010 318 479,280 496 698,340 185 528,250 4:42 654,660 351 541970 480 678.900 330 468 540 498 679.410 428 626,780 400 540.500