The accountant for Namala Manufacturers has compiled the following information (see top of next page) about the direct labor hours and utility costs for each month of 2016.

INSTRUCTIONS
1. Compute the monthly fixed costs (rounded to nearest whole dollar) and the variable costs per hour (rounded to nearest whole cent) using the high-low point method. Use the highest cost month in calculating fixed costs.
2. Compute the estimated total indirect labor cost if 3,600 hours of direct labor are employed during the month.
Analyze: Refer to your Instruction 1 answer. What approximate percentage of total costs is attributable to fixed costs?

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Direct Labor HoursUtility Costs Month 2550 2,695 3,280 3,745 4,300 4,190 4,288 3,810 3,679 3452 3,018 2,500 S2,250 2,295 2,630 2,885 3,500 3,185 3,300 3,010 2,895 2,895 2,840 2150 anuary February April June ust September Ocdober November December