Cycle Accessories manufacturers cellphone holders that can be mounted on the handle bars of most motorcycles. The manufacturing process is highly automated and management feels that machine-hours are likely the main driver of overhead costs. Data from the most recent year are shown below. Machine- Hours Month January February March 2,200 Overhead Costs $53,300 54,620 60,500 65,420 67,710 69,480 75,270 April May 2,260 2,500 3,220 3,400 4,000 4,600 4,900 3,400 2,560 4,600 August June July September October November December 5,200 76,640 74,260 67,400 62,190 73,410 Required: 1. Using least-squares regression, estimate the fixed cost and variable cost elements of monthly overhead costs. Estimate the fixed cost element to the nearest dollar and the variable cost element to the nearest cent. Fixed cost Variable cost $ $ 41,688 7.00 per machine hour 2. If the company expects to use 3,700 machine-hours next month, estimate total overhead costs. Total overhead costs