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Northern Lights Company manufacture recreated painting productsin a highly automated assembly plant in Yukon, North WestTerritories. Their automated system is in its first year ofoperation, and management is still unsure of the best way toestimate the overhead costs of operations for budgetary purposes.For the first six months of operations the following data werecollected:ObservationMachine-hoursKilowatt-hoursTotal Overhead CostsJanuary1,9502,260,000116,000February1,8252,170,000114,000March1,9002,250,000115,000April1,6502,145,000114,000May1,6252,100,000105,000June1,5502,060,000100,000Required:1) Compute a cost estimating equation for each independentvariable (machine-hours and kilowatt-hours) using the high-lowmethod. 2) For July the company ran the machines for 1,600 hours andused 2,075,000 kilowatt hours of power. The overhead costs totaled$95,000. Which driver was the best predictor for July?