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		725			1,346		$	102,717
2		705			1,409			103,874
3		675			1,514			109,896
4		745			1,455			108,269
5		775			1,599			116,283
6		760			1,579			114,415
7		750			1,386			107,029
8		720			1,305			102,049
9		705			1,449			106,410
10		795			1,547			113,059
11		680			1,294			97,090
12		710			1,606			108,790

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.)