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High-low method Automotive Company has accumulated the following data 51-2 Ames Automo over a six-month period: Indirect Labor January... February Similar Recall and R Indirect

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High-low method Automotive Company has accumulated the following data 51-2 Ames Automo over a six-month period: Indirect Labor January... February Similar Recall and R Indirect Hours Labor Costs 400 $ 6,000 500 7,000 March... 600 8,000 April ........... 700 9,000 10,000 900 11,000 3,900 $51,000 Separate the indirect labor into its fixed and variable compo- nents, using the high-low method. 800 May............... June ............ E4-3 Scattergraph method Using the data in E4-2 and a piece of graph paper: 1. Plot the data points on the graph and draw a line by visual inspection, indicating the trend shown by the data points. 2. Determine the variable cost per unit and the total fixed cost from the information on the graph

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