Use the following data for the next 2 questions

Milano Company has an average overhead cost per hour of $10.50 at 3,500 machine hours, and at 3,000 hours it is $11.25. The company managers wish to estimate the overhead cost function.

1/. What is the variable overhead cost per machine hour?

a. $1.00

b. $2.00

c. $6.00

d. $8.00

2/ What is fixed overhead cost?

a. $15,750

b. 36,750

c. 21,000

d. 18,000

e. None