The Lumber Products manufactures small tables. The overhead incurred in manufacturing the tables has both a fixed component and a variable component. The companys management wishes to explain variable overhead as a percentage of direct labor costs. Management has obtained the following cost data pertaining to the production of the small tables:

Units Produced	Direct Labor Costs	Overhead Costs
150	$1,900	$1,200
200	$2,500	$1,350
500	$4,500	$2,700
300	$2,700	$1,450
50	$1,500	$1,050

Compute the fixed and variable components of the overhead costs using the high-low method. The cost equation is:

	A.	Overhead Costs = $355 + 75%Direct Labor Cost.
	B.	Overhead Costs = $550 + 60%Direct Labor Cost.
	C.	Overhead Costs = $225 + 55%Direct Labor Cost.
	D.	Overhead Costs = $425 + 65%Direct Labor Cost.