The Shapely Company uses the high-low method to determine its cost equation. The following information was gathered for the past year:

	Machine Hours		Direct Labor costs
Busiest month(June)	14,750		$	770,000
Slowest month (December)	9,750		$	620,000

If Shapely expects to use 12,000 machine hours next month, what are the estimated direct labor costs?

$687,500.

$1,008,260.

$510,000.

$400,969.