Using the scattergraph and high-low points methods. The cost accountant of the Ramirez Corporation has compiled the following information about the direct labor hours and the indirect labor costs for each month of 19X0:

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 32,000 $18,800 February 28,500 17,400 March 29,400 17,700