The accountant of Green Manufacturing, LLC, has compiled the following information about the direct labor hours and the indirect labor costs for each month of 2016:

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 2,800 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 Labor Hours Indirect Labor Costs Month 2100 1,800 2550 2,700 3,500 3,300 3,300 3,100 2,860 3,000 2,900 2,300 S7,490 7,000 8,230 8,490 9,975 ,530 9,720 9,370 8,940 ,190 9,010 7,950 January February March April May June August September October November December