Solville Motors Co. makes motorcycles Managment wants to estimate overhead costs to plan its operations. A recent trade publication revealed that overhead costs tend to vary with machine hours. to check this, thet collected the following data for the past 12 months.

Problem 10 motorcycles. Management wants to estimate Solville Motors Co. makes overhead costs to plan its operations. A recent trade publication revealed that overhead costs tend to vary with machine hours. To check this, they collected the following data for the past 12 months. 44 Cost Accounting Month No 1 Machine Hours Overhead Costs 175 P4,500 2 170 4.225 7 160 4.321 4 190 5.250 5 175 4.200 6 200 5.100 7 160 4.450 8 150 4.200 210 5.475 10 12 180 4.760 170 4,325 145 3.975 Requirements 1. Use the high-low method to estimate the fixed and variable portion of overhead costs based on machine hours. 2. If the plant is planning to operate at a level of 200 machine hours next period, what would be the estimated overhead costs? 3. Use the method of least square to estimate the fixed and variable portion of overhead costs based on machine hours.