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			1,359		$	102,797
2		710			1,405			103,880
3		675			1,526			109,975
4		750			1,461			108,240
5		785			1,592			116,202
6		750			1,577			114,524
7		740			1,383			106,987
8		725			1,309			102,065
9		700			1,456			106,378
10		795			1,540			113,099
11		670			1,294			99,749
12		715			1,612			111,992

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