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			1,352		$	102,758
2		710			1,413			103,759
3		680			1,522			109,817
4		735			1,458			108,273
5		775			1,593			116,224
6		760			1,579			114,549
7		740			1,385			106,938
8		715			1,318			102,120
9		710			1,453			106,498
10		800			1,541			113,038
11		675			1,290			97,800
12		705			1,616			110,025

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 1,500 machine-hours next year. What are the estimated monthly overhead costs, assuming no inflation? (Round"Variable cost" answer to 2 decimal places.)

overhead cost-