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		715			1,363		$	102,637
2		725			1,416			103,790
3		680			1,519			109,862
4		745			1,455			108,246
5		775			1,586			116,278
6		760			1,580			114,424
7		745			1,396			106,908
8		725			1,306			102,081
9		705			1,450			106,396
10		785			1,549			113,055
11		670			1,292			101,666
12		700			1,604			114,302

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?

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

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?

	Overhead costs