E14-20. Scatter Diagrams and High-Low Cost Estimation From April I 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: 696 Chapter 14 Cost Behavior, Activity Analysis, and Cost Estimation Month Apr May June July. August September October. 4. C 240 305 325 LO3, 4 Cambridge Business Publishers Miles Mowed and Cleaned 275 220 75 Coles County LC Dopartament Labor Costs REQUIRED 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 scaller 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. What factors might have caused the difference in the equations developed for requirements (7) and (b)? $6,900 7,690 8,310 7,200 6,550 5,760 4,960 d. Adjust the equation developed in requirement (b) to incorporate the effect of an anticipated 5% increase in wages.

E14-20. Scatter Diaprams and High-L,ow Cost Extimation From A poil if through October 31, Coles County Highway Departinent hires kcmporay employ. akd you to help her in delermining the vaciable labor cost ef mowing and cleaning a mile of raed. The following information is avalihle rec anding curnent year opontions: LO3,4 bisinary IIIIIIIIIIIIIII neouinge. Wher crede. mal (h)? Shinctease in waps