Woodworks, Inc., produces cabinet doors. Manufacturing overhead costs tend to fluctuate from one month to the next, and management would like to accurately estimate these costs for planning and decision-making purposes.

The accounting staff at Woodworks recommends that costs be broken down into fixed and variable components. Because the production process is highly automated, most of the manufacturing overhead costs are related to machinery and equipment. The accounting staff believes the best starting point is to review historical data for costs and machine hours:

Reporting Period (Month)	Total Costs ($)	Machine Hours
January	278,000	1,550
February	280,000	1,570
March	266,000	1,115
April	290,000	1,700
May	262,000	1,110
June	269,000	1,225
July	275,000	1,335
August	286,000	1,660
September	250,000	1,000
October	253,000	1,020
November	260,000	1,025
December	281,000	1,600

Required: Usethe high-low method to estimate the cost function and answer the following questions:

1. What is the total fixed cost (round to dollar amount; add a comma to separate thousands):$_________
2. What is the variable cost per machine hour (round to the second decimal place):$___________

What is the total cost for a monthly machine hours of 1,450 hours (round to dollar amount; add a comma to separate thousands):$______________