Dundar Mifflin makes electronic products 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

$302,500

March

57,000

$323,000

April

58,000

$320,000

May

26,000

$160,200

June

29,000

$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 47,000 machine hours, using the separate estimates you obtained for its components.