The accountant of Venus Health Products, LLC, has compiled the following information about the direct labor hours and the indirect labor costs for each month of 2019:

INSTRUCTIONS
1. Compute the monthly fixed costs and the variable costs per hour, using the high-low point method. Use the highest cost month in calculating fixed costs.
2. Compute the estimated total indirect labor cost if 2,500 hours of direct labor are employed during a month.
Analyze: Refer to your Instruction 1 answer. What percentage of total costs for May is attributable to variable costs?

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Direct Indirect Month Labor Hours Labor Costs $6,810 1,800 January February 1,500 6,400 March 2,250 7,410 April 2,400 7,630 May 8,778 3,140 June 3,000 8,490 July 3,050 8,660 2,800 August 8,370 September 2,560 8,020 October 2,700 8,220 November 2,600 8,070 7,200 December 2,000