Pizza Vesuvio makes specialty pizzas. Vesuvio's controller wants to calculate the fixed and variable costs associated with
Question:
Pizza Vesuvio makes specialty pizzas. Vesuvio's controller wants to calculate the fixed and variable costs associated with labor used in the restaurant. Data for the past eight months were collected:
Required:
Using the high-low method, calculate the fixed cost of labor, calculate the variable rate per employee hour, and construct the cost formula for total laborcost.
Transcribed Image Text:
Labor Cost ($) 7,000 8,140 9,010 9,787 8,490 2,450 9,490 7,531 Month January February March April May June July Aug ust Employee Hours 360 550 585 610 480 350 570 310
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Step 1 x Find the high and low pointsThe high number of employee hours ...View the full answer
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Related Book For
Cornerstones of Managerial Accounting
ISBN: 978-0324660135
3rd Edition
Authors: Mowen, Hansen, Heitger
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