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Question - X Company's accountant uses the high-low method to determine the parameters of the company's monthly overhead cost function, with units produced as the independent variable. She has the following past monthly observations to work with:
Units Produced
Cost
6,500
$32,748
8,100
37,306
8,400
38,356
7,000
33,798
9,100
39,456
7,600
35,427
X Company estimates that 10,500 units will be produced in July. What are estimated fixed overhead costs for July [round variable costs per unit to two decimal places]?
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