Refer to the Pizza Vesuvio company information in Cornerstone Exercise 3-16. Coefficients shown by a regression program for this data are:
Intercept ......1,145
X Variable ......13.82
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. Round answers to the nearest dollar.