Refer to the information for Pizza Vesuvio above. Pizza Vesuvio€™s controller wants to calculate the fixed and variable costs associated with labor used in the restaurant.

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 labor cost.

Transcribed Image Text:

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