Dundar Mifflin makes electronic product for the RCMP. The following data is for the first six months:

Direct Labor Hours Manufacturing Overhead

January 45,000 $295,000

February 60,000 $320,000

March 57,000 $323,000

April 52,000 $247,250

May 34,000 $178,200

June 25,000 $162,500

Required:

1.Use the high-low method to estimate the cost formula

2.Estimate the total overhead cost at an activity level of 48,000 machine hours, using the separate estimates you obtained for its components.