The accountant of Venus Health Products, LLC, has compiled the following information about the direct labor hours and the indirect labor costs for each month of 2019:

Month	Direct Labor Hours				Indirect Labor Costs
January		1,300			$	6,090
February		1,000				5,400
March		1,750				7,130
April		1,900				7,480
May		2,550				9,120
June		2,500				8,910
July		2,500				9,090
August		2,300				8,610
September		2,060				8,020
October		2,200				8,360
November		2,100				8,120
December		1,500				6,670

Required:

1. Compute the monthly fixed costs and the variable costs per hour, using the high-low point method.
2. Compute the estimated total indirect labor costif 2,000 hours of direct labor are employed during a month.

Analyze: What percentage of total costs for May is attributable to variable costs?

a.

	Month	Direct Labor Hours	Indirect Labor Cost
High
Low
		$	$

b.

Fixed cost (using high month)
Total cost
Fixed cost	$

c.

Variable cost
Choose Numerator		Choose Denominator		Variable Cost
	/		=

d.

Variable cost
Fixed cost
Estimated total indirect labor cost	$

e.

What percentage of total costs for May is attributable to variable costs? (Enter the percent value rounded to 1 decimal place (i.e., 0.123 should be entered as 12.3).

Variable Cost _____%