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Please answer a, b, c, and d. Thanks. -20 . Scatter Diagrams and High-Low Cost Estimation From April 1 through October 31, Coles County Highway
Please answer a, b, c, and d. Thanks.
-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: Miles Mowed and Cleaned Labor Costs Month April May. June July August September October. 240 305 325 275 220 200 75 $6,800 7,680 8,310 7,200 6,550 5,760 4,960 REQUIRED a. b. 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- ne 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 (a) and (b)? d. Adjust the equation developed in requirement (b) to incorporate the effect of an anticipated 5% increase in wages. CStep by Step Solution
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