The following information applies to questions 31 to 33

Wasderf Limited is a capital-intensive business that manufactures scuba tanks. Financial information for the last six months ending December 2019 reveals the following:

Month	Scuba tanks sold	Production overheads ($ thousands)
July	120	27
August	100	24.8
September	120	29
October	140	29.9
November	180	37.6
December	160	35.7

Question 31 (2 marks): 1.Use the high-low method to estimate the variable production overhead cost per scuba tank.

2.Estimate the fixed production overhead cost

3.Estimate the total production overheads for January if the company expects sales of 210 scuba tanks in that month.