WEEK THREE: CHAPTER FIVE HOMEWORK A Saved 2. Exercise 5-36 (Algo) Methods of Estimating Costs: High-Low (LO 5-4) 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. 25 points Skipped Month 1 2 3 4 Machine-Hours 1,354 1,402 1,512 1,459 1,588 1,574 1,383 1,304 eBook Labor-Hours 730 720 690 745 785 760 730 720 715 795 665 705 5 6 7 8 9 10 11 12 Overhead Costs $ 102,738 103,764 109,969 108,308 116, 217 114,465 106,946 102,135 106,300 113,013 99,510 111,830 Print 1,462 1,542 1,290 1,610 References Required: a. Use the high-low method to estimate the fixed and variable portions of overhead costs based on machine-hours. 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? Complete this question by entering your answers in the tabs below. Required A Required B 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 (per machine hour) Fixed cost Required A Required B Complete this question by entering your answers in the tabs below. Required A Required 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? Overhead costs