collected: January February March April May June July August Zachary's Pizza makes specialty pizzas. Data for...

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collected: January February March April May June July August Zachary's Pizza makes specialty pizzas. Data for the past eight months were Labor Cost $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 Required: a. Compute the cost formula for labor cost using the high-low method. Assuming 500 employee hours are budgeted for the month of September, calculate the total labor cost for September. b. In Excel, compute the cost formula for labor cost using the method of least squares (regression). Assuming 500 employee hours are budgeted for the month of September, calculate the total labor cost for September. c. Based on the method of least squares output: i) What percentage of variability in labor costs is explained by the employee hours? ii) What do the hypothesis tests of the coefficients tell you about the choice of employee hours as the independent variable and the probability that there are fixed costs? d. Comment on the accuracy of your high-low estimates (requirement a) relative to your method of least-squares estimates (requirement b). collected: January February March April May June July August Zachary's Pizza makes specialty pizzas. Data for the past eight months were Labor Cost $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 Required: a. Compute the cost formula for labor cost using the high-low method. Assuming 500 employee hours are budgeted for the month of September, calculate the total labor cost for September. b. In Excel, compute the cost formula for labor cost using the method of least squares (regression). Assuming 500 employee hours are budgeted for the month of September, calculate the total labor cost for September. c. Based on the method of least squares output: i) What percentage of variability in labor costs is explained by the employee hours? ii) What do the hypothesis tests of the coefficients tell you about the choice of employee hours as the independent variable and the probability that there are fixed costs? d. Comment on the accuracy of your high-low estimates (requirement a) relative to your method of least-squares estimates (requirement b).

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a The cost formula for labor cost using the highlow method is Labor ... View the full answer