The Macon Company uses the high-low method to determine its cost equation. The following information was gathered for the past year: Machine Hours - Busiest month (June): 20,000, Slowest month (December): 8,000. Direct Labor Costs - Busiest month (June): 250,000, Slowest month (December):127,000. What are the direct labor costs per machine hour?
1) 10.25
2) 15.88
3) 13.46
4) 12.50