Records at Hal's Accounting Services show the following costs for year 1: Direct materials and supplies Employee costs Total overhead $ 46,000 2,600,000 1,270,000 Production was 40.000 billable hours. Fixed overhead was $730,000. Assuming no change in billable hours in year 2, direct materials and supplies costs are expected to increase by 10 percent. Direct labor costs are expected to increase by 15 percent. Variable overhead per billable hour is expected to remain the same, but fixed overhead is expected to increase by 5 percent. Required: a. Year 2 production is expected to be 32,000 billable hours. What are the estimated direct materials, direct labor, variable overhead, and fixed overhead costs for year 2? (Do not round intermediate computations.) Year 2 Cost Cost Item Direct materials and supplies Direct labor Variable overhead Fixed overhead Total costs $ Adriana Corporation manufactures football equipment. In planning for next year, the managers want to understand the relation between activity and overhead costs. Discussions with the plant supervisor suggest that overhead seems to vary with labor-hours, machine-hours, or both. The following data were collected from last year's operations: Month 1 2 3 4 5 6 7 8 9 10 11 12 Labor- Hours 725 705 685 730 775 76e 750 725 705 785 675 700 Machine-Hours Overhead Costs 1,348 $102,658 1,406 103,758 1,523 109,870 1,451 108, 371 1,583 116,237 1,580 114,496 1,394 106,959 1, 303 102,158 1,453 106, 303 1,546 113,112 1,294 103,581 1,616 116,944 Required: a. Use the high-low method to estimate the fixed and variable portions of overhead costs based on machine-hours. (Round "Variable cost" answer to 2 decimal places.) Variable cost (por machine hour) Fixed cost b. Managers expect the plant to operate at a monthly average of 1.500 machine hours next year. What are the estimated monthly overhead costs, assuming no Inflation? (Round "Variable cost" answer to 2 decimal places.) Overhead costs