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Business, 12.03.2021 15:00 graycelynn123

From April 1 through October 31, Will County Highway Department hires temporary employees to mow and clean the right-of-way along county roads. The County Road Commissioner has asked you to help her in determining the variable labor cost of mowing and cleaning a mile of road. The following information is available regarding current-year operations: Month Miles Mowed and Cleaned Labor Costs
April 350 $12,000
May 300 11,250
June 400 13,500
July 250 8,250
August 375 12,750
September 200 7,500
October 100 7,200

Required:
a. Use the information from the high- and low-volume months to develop a cost-estimating equation for monthly labor costs.
b. Plot the data on a scatter diagram. Using the information from representative high and low volume months, use the high-low method to develop a cost-estimating equation for monthly labor costs.
c. What factors might have caused the difference in the equations developed for requirements A and B?
d. Adjust the equation developed in requirement B to incorporate the effect of an anticipated 7 percent increase is wages.

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