Question 3: (7 marks) As part of his job operations of the Machining Department: as a cost analyst, Max Thompson collected the folllowing information concerning the Machine-hours Total Operating Costs 4,000 4,600 3,800 4,400 Observation January February $46,000 49,500 45,750 48,000 49,300 March April May 4,500 Required: Use the high-low method to determine the estimating cost function with machine hours as the cost a driver. (4 marks) b) If June's estimated machine-hours total 4,200, what are the total estimated costs of the Machining Department? (Imark) c) Consider variable operating cost per machine hour "b" calculated above. If it takes three machine hours to produce one unit and total 2,000 units are operating cost. produced, then calculate total variable (1 mark) d) How high-low method is different from regression method? and what is the main advantage of using the high-low method for cost estimation? (1 mark)