Question: Using High - Low to Calculate Predicted Total Variable Cost and Total Cost for Budgeted Output Pizza Vesuvio makes specialty pizzas. Data for the past

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 $7,300330
February $10,199520
March $8,440640
April $10,087580
May $8,790450
June $7,831320
July $9,790540
August $7,750280
Assume that this information was used to construct the following formula for monthly labor cost.
Total Labor Cost = $7212+($1.92 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.

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