The Macon Company uses the high-low method to determine its cost equation. The following information was gathered for the past year:

	Machine Hours	Direct Labor Costs
Busiest month (June)	21,500	$ 261,950
Slowest month (December)	15,000	$ 195,000

If Macon expects to use 17,500 machine hours next month, what are the estimated direct labor costs?

Multiple Choice

$220,750.

$180,250.

$203,250.

$235,500.