Use the high-low points method. (Obj. 5). The monthly managerial costs of the London Company's factory for each month of 19X9 have been analyzed. The month in which the greatest number of direct labor hours were worked was March, with 10,000 hours. The managerial costs for that month totaled $80,000. In July, the month of fewest direct labor hours. 6,800 hours were worked, and managerial costs were $64,000. Use the high-low points method to do the following:

a. Compute the variable cost per direct labor hour.

b. Compute the fixed cost per month.

LO.1