Scatter Diagrams and High-Low Cost Estimation From April 1 through October 31, Coles County Highway Department hires temporary employees 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: Month April Miles Mowed Labor and Cleaned Costs 240 $6,800 May 305 7,680 June 325 8,310 July 275 7,200 August 220 6,550 September October 200 5,760 75 4,960 Use the information from the high- and low-volume months to develop a cost-estimating equation for monthly labor costs. Monthly labor costs $ 3,955 + $ 13.4 X 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. Monthly labor costs 0x +$ xx Adjust the equation developed in requirement (b) to incorporate the effect of an anticipated 5% increase in wages. Monthly labor costs x + $ x x