Question

Refer to the information for Pizza Vesuvio on the previous page. Assume that this information was used to construct the following formula for monthly labor cost.
Total labor cost = $5,237 + ($7.40 x Employee hours)

Required:
Assume that 4,000 employee hours are budgeted for the coming year. Use the total labor cost formula to make the following calculations:
1. Calculate total variable labor cost for the year.
2. Calculate total fixed labor cost for the year.
3. Calculate total labor cost for the coming year.


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  • CreatedSeptember 22, 2015
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