Using the high-low points method. The Endicott Company's direct labor hours and indirect materials costs for the year ended March 31, 19X5 were as follows:

Instructions Compute the variable rate per direct labor hour using the high-low points method.
Show your computations. Carry the answer to four decimal places and round to three.

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Month Direct Labor Hours Indirect Materials Costs April 25.700 $ 8.120 May 28,950 8.780 June 32.800 10,520 July 37.450 11,540 August 38.600 11,720. September 41,900 12.740 October 42.875 13.200 November 42.000 13.112 December 38,100 12.040 January 36,785 11,580 February 35,420 11.360 March 30,180 9,640 Total 430.760 $134,352