The following information is available regarding the total manufacturing overhead costs of Paymore, Inc., for five

The following information is available regarding the total manufacturing overhead costs of Paymore, Inc., for five months in 2012:

                              Hours              Overhead Costs

February                    6,900                $6,250

March                        5,000                $5,375

April                           6,300               $6,025

May                           9,333               $7,975

June                          6,833               $6,050

(A) Using the high-low method, compute the following:

       (1) The variable element of overhead cost per machine-hour:  

       (2) The fixed element of monthly overhead cost:  

(B) Use the cost relationship determined in part (a) to estimate the total manufacturing overhead costs for July 2012, given that 7,250 machine-hours are scheduled.