-20. Scatter Diagrams and High-Low Cost Estimation From April 1 through October 31, Coles County Highway Department hires temporary employ- ees 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: mavior, Activity Analysis, anu U Miles Mowed and Cleaned Labor Costs $6,800 Month 7,680 240 305 325 275 220 200 75 8,310 7,200 April May. June July August September October.. 6,550 5,760 4,960 REQUIRED a. Use the information from the high- and low-volume months to develop a cost-estimating equation for monthly labor costs. 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 b. 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 5% increase in wages