Using the high-low points method and the method of least squares. The direct labor hours and payroll taxes and fringe benefits of the Cleary Company for six months during 19X1 are shown below.

Instructions 1. Using the high-low points method, compute the variable rate per direct labor hour and the fixed cost per month for payroll taxes and fringe benefits.
2. Using the method of least squares, compute the variable rate per direct labor hour and the fixed cost per month for payroll taxes and fringe benefits. (Round the variable costs to the nearest tenth of a cent per hour and the fixed costs to the nearest whole dollar per month.)

Direct Month Labor Hours Payroll Taxes and Fringe Benefits January 4.800 $6.960 February 3,900 5,900 March 4.600 6.680 April 5,100 7.400 May 4.900 6.040 June 4,320 6.370