Question: Using the scattergraph and high-low points methods. The cost accountant of the Gale Corporation has compiled the following information about the direct labor hours and

‘Using the scattergraph and high-low points methods. The cost accountant of the Gale Corporation has compiled the following information about the direct labor hours and the indirect labor costs for each month of 19X2:

Direct Indirect Month Labor Hours Labor Costs January 4,600 $6,220 February 4.200

Instructions 1. Plot these data on a scattergraph. Fit the points with a line and estimate the fixed costs from the graph.
2. Compute the monthly fixed costs and the variable costs per hour, using the high-low points method.

Direct Indirect Month Labor Hours Labor Costs January 4,600 $6,220 February 4.200 5,940 March 3,600 5,520 April 3,950 5,765 May 4,070 5,910 June 4,480 6,120 July 4,950 6,465 August 4.840 6,300 September 4,720 6,304 October 4.680 6,276 November 5,020 6,514 December 4,800 6,360

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