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
1		720			1,363		$	102,744
2		705			1,416			103,840
3		680			1,529			109,841
4		745			1,453			108,254
5		780			1,598			116,140
6		755			1,573			114,549
7		740			1,399			107,046
8		730			1,300			102,044
9		710			1,453			106,468
10		790			1,547			113,143
11		680			1,298			99,377
12		700			1,608			111,467

Required:

a. Use the high-low method to estimate the fixed and variable portions of overhead costs based on machine-hours. (Round "Variable cost" answer to 2 decimal places.)

b. Managers expect the plant to operate at a monthly average of 1,700 machine-hours next year. What are the estimated monthly overhead costs, assuming no inflation? (Round "Variable cost" answer to 2 decimal places.)