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			1,364		$	102,794
2		720			1,415			103,854
3		690			1,515			109,914
4		735			1,459			108,240
5		775			1,581			116,295
6		755			1,580			114,521
7		745			1,382			106,977
8		725			1,305			102,188
9		705			1,456			106,378
10		795			1,550			113,098
11		675			1,292			100,616
12		710			1,604			113,252

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 1,600 machine-hours next year. What are the estimated monthly overhead costs, assuming no inflation? (Round"Variable cost" answer to 2 decimal places.)