Question 4 - 8 marks - 14 minutes Ace Manufacturing Ltd. (AML) is in the process of analyzing their factory's overhead costs. The company is developing financial budgets for the coming year and would like to create a formula that will allow them to project the factory overhead costs for the next year. Total factory overhead is made up of 3 accounts - rent, maintenance, and indirect labour. Rent is a fixed charge of $1,000 per month and maintenance is variable at $1.00 per machine hour. Indirect labour is a mixed cost. Looking back at previous records, the following data was accumulated with respect to total factory overhead for last year. Machine Total factory hours Overhead Jan 10,000 45,000 Feb 15,000 55,000 Mar 8,000 40,000 Apr 17,000 57,000 May 13,000 47,000 Jun 7,000 41,000 Jul 21,000 65,000 Aug 16,000 55,000 Sep 18,000 59,000 Oct 11,000 48,000 Nov 9,000 42,000 Dec 14,000 54,000 Required Using the High-Low method and using July and June as the high and low months, determine a cost formula that AML could use to estimate total overhead costs for the coming year.