Refer to the information for Pizza Vesuvio on the previous page. Coefficients shown by a regression program for Pizza Vesuvio€™s data are:
Intercept ........... 4,764
X Variable .......... 7.55

Required:
Use the results of regression to make the following calculations:
1. Calculate the fixed cost of labor and the variable rate per employee hour.
2. Construct the cost formula for total labor cost.
3. Calculate the budgeted cost for next month, assuming that 675 employee hours are budgeted.

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Month Labor Cost January February March April May June July August 7,000 8,140 9,899 9,787 8,490 7,450 9.490 7,531 Employee Hours 360 550 630 610 480 350 570 310