The Ramon Company is a manufacturer interested in developing a cost formula to estimate the variable and fixed components of its monthly manufacturing overhead costs. The company wishes to use machine-hours as its measure of activity and has gathered the data below for this year and last year: The company leases all of its manufacturing equipment. The lease arrangement calls for a flat monthly fee up to 19,500 machine-hours. If the machine-hours used exceed 19,500, then the fee becomes strictly variable with respect to the total number of machine-hours consumed during the month. Lease expense is a major element of overhead cost. Required: 1. Using the high-low method, estimate a manufacturing overhead cost formula in the form Y=a+bX. 2. Prepare a scattergraph using all of the data for the two-year period. Fit a straight line or lines to the plotted points using a ruler. Descr the cost behavior pattern revealed by your scattergraph plot. 3. Assume a least-squares regression analysis using all of the given data points estimated the total fixed cost to be $40,102 and the variab cost to be $2.13 per machine-hour. Do you have any concerns about the accuracy of the high-low estimates you have computed or the least-squares regression estimates provided? 4. Assume the company consumes 22,500 machine-hours during a month. Using the high-low method, estimate the total overhead cost incurred at this level of activity. Be sure to consider only the data points contained in the relevant range of activity when performing y computations. 5. Comment on the accuracy of your high-low estimates assuming a least-squares regression analysis using only the data points in the relevant range of activity estimated the total fixed cost to be $10,090 and the variable cost to be $3.53 per machine-hour