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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:
April 350 $9,600
May 300 $8,800
June 400 $10,400
July 250 $8,000
August 375 $10,000
September 200 $7,200
October 100 $6,200
Problem 1: Use the information from the high- and low-volume months to develop a cost-estimating equation for monthly labor costs.
Problem 2: 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.
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