b.) Assume that the Mattoon Components Company had the following total manufacturing overhead costs and direct labor hours in 2016 and 2017:

2016 2017

Total manufacturing overhead $206,000 $252,000

Direct labor hours 20,000 28,000

Use the high-low method to develop a cost estimating equation for total manufacturing overhead.

Total costs = $Answer + $Answer X

(c.) Develop a predetermined rate for 2018, assuming 25,000 direct labor hours are budgeted for 2018. Round answers to two decimal places. $Answer per direct labor hour

(d.) Assume that the actual level of activity in 2018 was 30,000 direct labor hours and that the total 2018 manufacturing overhead was $250,000. Determine the underapplied or overapplied manufacturing overhead at the end of 2018. Do not use a negative sign with your answer. $Answer Answer