Question: please answer both questions - Using Regression to Calculate Fixed Cost, Calculate the Variable Rate, Construct a Cost Formula, and Determine Budgeted Cost Pizza Vesuvio


Using Regression to Calculate Fixed Cost, Calculate the Variable Rate, Construct a Cost Formula, and Determine Budgeted Cost Pizza Vesuvio makes specialty pizzas. Data for the past 8 months were collected: Coefficients shown by a regression program for Pizza Vesuvio's data are: " Check My Wonk 1. The measures of activity output are the intercept and X-variable. 2. Use this fixed cost and variable rate in the cost formula. 3. Use this fixed cost, and the variabie rate in the cost formula multiplied by 650 . 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 tha hearest cent. Required: 1. Using the high-low method, calculate the variable rate. I per emplayee hour 2. Using the high-low method, calculate the fixed cost of labor. X 3. Using the high-low method, construct the cost formula for total labor cost. Total labor cost =1
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