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

Machine- Hours			Manufacturing Overhead
January		6,000		$	320,000
February		3,200			224,000
March		4,900			264,000
April		2,500			180,000

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

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

b. Bursa expects machine-hours in May to equal 4,500. Use the cost relationships determined in part a to forecast Mays manufacturing overhead costs.

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?