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

59,700

$306,575

March

57,000

$323,000

April

58,000

$320,000

May

27,700

$158,500

June

29,000

$152,500

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

2.

Estimate the total overhead cost at an activity level of 42,000 machine hours, using the separate estimates you obtained for its components.