The Sugar Ant Bakery uses the high-low method to estimate its cost function. The information for 2021 is provided below: Machine-hours Costs Highest observation of cost driver 4.250 $340,000 Lowest observation of cost driver 4.000 $330,000 Required: A. What is the estimated cost equation? B. Nuts Company has mostly fixed costs and Bolt Company has mostly variable costs. Which company has the greatest potential of a net profit? Explain why. Question 2 (25 marks) Tack-ME Tailor Company uses machine-hours as the single indirect-cost rate to allocate manufacturing overhead costs to the various jobs contracted during the year. The following estimates are provided for the coming year for Company and for Pearl High School Dance Jacket job. Company Pearl High School Job Direct materials $45,000 $700 Direct manufacturing labor $15,000 $300 Manufacturing overhead costs $70,000 Machine-hours 35,000mh 500mh Required: A. Determine the estimated total manufacturing costs for the Pearl High School Job. B. Describe the differences between process costing and job costing. Discuss some typical products which would be more likely to use process costing as compared to some which would be more likely to use job costing