www.YORKVILLEU.CA Question 4: High-Low Method Time: 15 minutes Total: 10 marks A manufacturing manager collected the following information for the Production Department Observation January February March Machine hours 8,000 9,200 7,600 8,800 Total Operating costs $60,000 66,000 61,000 64,000 65,000 April May 9,000 Required: Determine the estimating cost function with machine-hours as the cost driver using the high-low method. b. If June's estimated machine-hours total 8,400, what is the estimated cost of the Production Department? BUSI PORT OUCTION TO MANAGERIAL ACCOUNTING