Scatter Diagrams and High Low Cost Estimations

From April 1 through October 31, Coles County Highway Dep. hires temporary employees to mow and clean the right of way along county roas. The Count Road Commissionwer has asked you to help her in th variable labor cost of mowing and cleaning a mile of road. The following information is availablw regarding current year operations. ( see image for data and questions A,B, C D)

Miles Mowed Labor and Cleaned Costs Month April May.... June July August .. September. October 350 300 400 250 375 200 100 $ 9,600 8,800 10,400 8,000 10,000 7,200 6,200 Required a. 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 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 labor costs. c. What factors might have caused the difference in the equations developed for requirements (a) and (o d. Adjust the equation developed in requirement (b) to incorporate the effect of an anticipated 8 percent increase in wages Miles Mowed Labor and Cleaned Costs Month April May.... June July August .. September. October 350 300 400 250 375 200 100 $ 9,600 8,800 10,400 8,000 10,000 7,200 6,200 Required a. 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 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 labor costs. c. What factors might have caused the difference in the equations developed for requirements (a) and (o d. Adjust the equation developed in requirement (b) to incorporate the effect of an anticipated 8 percent increase in wages