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 HighLow to Calculate Predicted Total Variable Cost and Total Cost for Budgeted Output
Pizza Vesuvio makes specialty pizzas. Data for the past months were collected:
Month Labor Cost Employee Hours
January $
February $
March $
April $
May $
June $
July $
August $
Assume that this information was used to construct the following formula for monthly labor cost.
Total Labor Cost $$ x Employee Hours
Required:
Assume that employee hours are budgeted for the month of September. Use the total labor cost formula for the following calculations:
Calculate total variable labor cost for September. Round your answer to nearest whole number.
$fill in the blank
Calculate total labor cost for September. Round your answer to nearest whole number.
$fill in the blank
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