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 $$6,800370$

February $9,699560$

March $7,940650$

April $9,587620$

May $8,290490$

June $7,331360$

July $9,290580$

August $7,250320$

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

Total Labor Cost $=$ $$6,581+($$$2\mathrm{.}09$ 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: