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 $$7,100430$

February $9,999620$

March $8,240740$

April $9,887680$

May $8,590550$

June $7,631420$

July $9,590640$

August $7,550380$

Assume that this information was used to construct the following formula for monthly labor cost.

Total Labor Cost $=$ $$6,820+($$$1\mathrm{.}92$ X Employee Hours$)$

Required:

Assume that $4,000$ 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.

$fill in the blank $1$

$7,680$

$2.$ Calculate total fixed labor cost for the coming year. Round your answer to the nearest dollar.

$fill in the blank $2$

$3.$ Calculate total labor cost for the coming year. Round your answer to the nearest dollar.

$fill in the blank $3$