Question 3 (12 Marks) Month 1 2. Machine hrs 6775 7035 3 4 5 6 Labor hrs 3625 3575 3400 3700 3900 3775 3700 3635 3550 3975 3375 3550 7600 7265 7955 7895 6950 6530 7270 7725 6490 Overhead cost 513435 518960 549575 541400 581145 572320 535110 510470 532195 565335 503775 564210 7 8 9 10 11 12 8020 Required a. Use the high-low method to estimate the fixed and variable portions of overhead costs based on machine- hours. b. Managers expect the plant to operate at a monthly average of 8,500 machine-hours next year. What are the estimated monthly overhead costs, assuming no inflation