Figure 3-5 Lee Corporation Manufactures and Sells Party Items

Figure 3-5 Lee Corporation manufactures and sells party items.The following representative direct labor hours and production costs are provided for a four-month period:

-Refer to Figure 3-5.Using the high-low method, what is the cost formula for estimating costs?

A) Total cost = $20,000 + $2.08X
B) Total cost = $2.08X
C) Total cost = $5,000 + 2.08X
D) Total cost = $7,500 + $2.08X