Adriana Corporation manufactures football equipment. In planning for next year, the managers want to understand the relation between activity and overhead costs. Discussions with the plant supervisor suggest that overhead seems to vary with labor-hours, machine-hours, or both. The following data were collected from last year's operations. Month Labor-Hours Machine-Hours Overhead Costs 10 11 12 -234567000EN 1 735 1,347 $ 102,701 715 1,404 103,790 685 1,530 109,801 735 1,450 108,380 780 1,592 116,126 750 1,581 114,513 740 1,390 106,976 8 715 1,318 102,015 9 710 1,455 106,386 800 1,538 113,047 670 1,284 100,307 705 1,612 113,591 Required: a. Use the high-low method to estimate the fixed and variable portions of overhead costs based on machine-hours. b. Managers expect the plant to operate at a monthly average of 1,400 machine-hours next year. What are the estimated monthly overhead costs, assuming no inflation?