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: Labor- Machine- Hours 720 720 685 735 775 745 735 715 705 800 670 705 Overhead Costs $102,624 103, 884 109, 827 108, 261 116, 176 114,533 107,037 102, 046 106, 407 113, 167 98,902 111,538 Month Hours 1,349 1,406 1,516 1,455 1,598 1,578 1,394 1,319 1,451 1,538 1,288 1,612 2 4 6. 8. 9 10 11 12 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.) Variable cost (per machine hour) Fixed cost 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? (Round "Variable cost" answer to 2 decimal places.) Overhead costs 283 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: Labor- Machine- Hours 720 720 685 735 775 745 735 715 705 800 670 705 Overhead Costs $102,624 103, 884 109, 827 108, 261 116, 176 114,533 107,037 102, 046 106, 407 113, 167 98,902 111,538 Month Hours 1,349 1,406 1,516 1,455 1,598 1,578 1,394 1,319 1,451 1,538 1,288 1,612 2 4 6. 8. 9 10 11 12 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.) Variable cost (per machine hour) Fixed cost 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? (Round "Variable cost" answer to 2 decimal places.) Overhead costs 283 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: Labor- Machine- Hours 720 720 685 735 775 745 735 715 705 800 670 705 Overhead Costs $102,624 103, 884 109, 827 108, 261 116, 176 114,533 107,037 102, 046 106, 407 113, 167 98,902 111,538 Month Hours 1,349 1,406 1,516 1,455 1,598 1,578 1,394 1,319 1,451 1,538 1,288 1,612 2 4 6. 8. 9 10 11 12 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.) Variable cost (per machine hour) Fixed cost 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? (Round "Variable cost" answer to 2 decimal places.) Overhead costs 283