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Using High-Low to Calculate Fixed Cost, Calculate the Variable Rate, and Construct a Cost Function Pizza Vesuvio makes specialty pizzas. Data for the past 8 months were collected: Month Labor Cost($) Employee Hours January 290 9,490 7,000 February 330 March 7,531 April 8,140 May 9,787 310 240 June 8,490 July 10,776 400 August 7,500 220 Pizza Vesuvio's controller wants to calculate the fixed and variable costs associated with labor used in the restaurant. In your calculations, round the variable rate per employee hour to the nearest cent. If required, round your final answers to the nearest cent. Required: 1. Using the high-low method, calculate the fixed cost of labor. 2. Using the high-low method, calculate the variable rate. per employee hour 3. Using the high-low method, construct the cost formula for total labor cost. Total labor cost = $0 + ($ x Employee hours) Using High-Low to Calculate Predicted Total Variable Cost and Total Cost for Budgeted Output Pizza Vesuvio makes specialty pizzas. Data for the past 8 months were collected: Month Labor Cost Employee Hours January $6,900 330 February $9,799 520 March $8,040 610 April $9,687 580 May $8,390 June $7,431 July $9,390 August $7,350 280 Assume that this information was used to construct the following formula for monthly labor cost. Total Labor Cost = $6765 + ($2.09 x Employee Hours) Required: Assume that 635 employee hours are budgeted for the month of September. Use the total labor cost formula for the following calculations: 1. Calculate total variable labor cost for September. Round your answer to nearest whole number. 2. Calculate total labor cost for September. Round your answer to nearest whole number. Using High-Low to Calculate Predicted Total Variable Cost and Total Cost for a Time Period that Differs from the Data Period Pizza Vesuvio makes specialty pizzas. Data for the past 8 months were collected: Month Labor Cost Employee Hours January 350 $7,000 9,899 February 540 March 8,140 April 9,787 640 600 470 340 May 8,490 June 7,531 July 9,490 560 August 7,450 300 Assume that this information was used to construct the following formula for monthly labor cost. Total Labor Cost = $6,841 + ($2.03 X Employee Hours) Required: Assume that 4,200 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 coming year. Round your answer to the nearest dollar. 2. Calculate total fixed labor cost for the coming year. Round your answer to the nearest dollar. 3. Calculate total labor cost for the coming year. Round your answer to the nearest dollar. $