Question 3: (8 marks) (12 minutes) Sydney Company incurred the following costs and machine hours for the months of October, November and December. Cost Item Insurance Utilities Maintenance October $10,000 20,000 5,500 November $10,000 30,000 5,750 December $10,000 24,000 5,600 Machine hours 1,000 1,500 1,200 Required: (round to 2 decimal places) a. Assuming that the driver for all costs is machine hours, determine the cost behaviour of each of the three types of costs above. Show calculations. (3 marks) b. For any mixed costs identified in part a), use the high low method to determine the fixed and variable components of the cost. (3 marks) c. Using your answers from parts a) and b), construct a total cost estimation equation for Sydney company. (2 marks)