The GH Manufacturing Company makes a product called Z. Some of the manufacturing expenses are easily identified as fixed or variable directly with
production. The cost accountant of the company is confronted with the problem of preparing a flexible budget for the coming year and wishes to determine
the fixed and variable elements of the mixed factory overhead. The following details are provided for the first 10 months of the past year:

Number of Units Mixed Factory

Month

Number of Units Produced x Overhead y

Mixed Factory

Overhead y

1

1500

$ 800

2

2000

1000

3

3000

1350

4

2500

1250

5

3000

1300

6

2500

1200

7

3500

1400

8

3000

1250

9

2500

1150

10

1500

800

25000

$11500

Determine the fixed and variable elements of the mixed factory overhead using the high-low

method.

(SMA adapted)