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 $6,800400
February $9,699590
March $7,940700
April $9,587650
May $8,290520
June $7,331390
July $9,290610
August $7,250350
Assume that this information was used to construct the following formula for monthly labor cost.
Total Labor Cost = $6561+($1.97 x Employee Hours)
Required:
Assume that 715 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.
$fill in the blank 1
2. Calculate total labor cost for September. Round your answer to nearest whole number.
$fill in the blank 2

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