Smile, Inc., has provided the following actual cost data for your use in determining variable factory overhead costs and fixed factory overhead costs for budgeting purposes:

Required:

a. Determine an overall variable factory overhead rate per machine-hour and total fixed factory overhead using the high-low method, assuming management believes no other major factors affect cost behavior.

b. Determine the cost estimating function for factory overhead.

c. Give the budgeted amount in each of the six accounts if the management of Smile, Inc., budgets 83,600 machine-hours for the winter quarter.

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Quarters Spring Summer Fall Machine hours 70,000 80,000 90,000 Direct material $147,000 $168.000 $ 189,000 Direct labor 350,000 400,000 450,000 Factory overhead.. 50,400 56,700 63,000 Salespersons' salaries 182,000 208,000 234,000 Warehousing.. 56,000 64,000 72,000 Executive salaries. 90,000 90,000 90,000 $875,400 $986,700 $1,098,000