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

a. Use the high-low method to determine:
1. The variable element of manufacturing overhead costs per machine-hour.
2. 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 May's 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?

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Machine- Manufacturing Jan. Feb. .. Mar. ..- Apr. Hours 6,000 3,200 4,900 2,500 Overhead $320,000 224,000 264,000 180,000