The following information is available regarding the total manufacturing overhead of Bursa Mfg. Co. for a recent four-month period:

	Machine-Hours		Manufacturing Overhead
Jan.	5,400		$	310,000
Feb.	3,200			224,000
Mar.	4,900			263,800
Apr.	2,800			180,000

a-1	Use the high-low method to determine the variable element of manufacturing overhead costs per machine-hour.

Manufacturing overhead cost

$

per machine hour

a-2	Use the high-low method to determine the fixed element of monthly overhead cost.

Fixed element of manufacturing overhead

$

b.	Bursa expects machine-hours in May to equal 5,300. Use the cost relationships determined in part a to forecast May's manufacturing overhead costs.

Estimated manufacturing overhead

$

c.	Suppose Bursa had used the cost relationships determined in part a to estimate the total manufacturing overhead expected for the months of February and March. By what amounts would Bursa have over- or underestimated these costs?

Amount over (under) estimated
February	$
March	$