Harrison Company has accumulated the following total manufacturing overhead costs for two levels of activity (within the relevant range):

The total overhead cost includes variable, fixed, and mixed costs. At 120,000 direct labor hours, the total cost breakdown is as follows:

Required

a. Using the high-low method of cost analysis, determine the variable portion of the semi-variable cost per direct labor hour. Determine the total fixed cost component of the mixed cost.

b. What should the total planned overhead cost be at 100,000 direct labor hours?

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Activity (direct labor hours).. Total manufacturing overhead. Low High 80,000 120,000 $468,000 $604,000