Faraz Corporation has provided the following production and total cost data for two levels of monthly production volume. The company produces a single product.

Production Value 5,000 6,000
DM 70,500 84,600
DL 130,500 156,600
FOH 802,000 824,400

The best estimate of the total cost to manufacture 5,300 units is closest to:
High Low Method:
x=5,300
Step 1:
(1,065,600-1,003,00)/(6,000-5,000)
=$62,60
Step 2:
1,065,600=A+($62,60*6,000)
=690,000
Step 3:
y=690,000+(62.60*5,300)
=$1,021,780