3-26 High-Low Cost Estimation and Simple Regression Analysis The Blacksburg Company is separating materials handling components. The following data have been collected over a amounts are in thousands): cost into fixed and variable five-month period (all h Materials Cost of Materials Issued pb$7i gnas ods $1.60g Direct ITTT Handling Costssd Labor Hours Month 4 1.70 5 2 1.80 3 6 1.90 8 7 4 352 1O n2.00 mA 6 8 .adr thor Required: (1) Determine the fixed and variable materials handling using direct labor hours as the measure of volume. (2) Determine the fixed and variable materials handling cost by the method of least squares using direct labor hours as the measure of volume.dl cost by the high-low method