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 $$6,900330$

February $8,040520$

March $9,799600$

April $9,687580$

May $8,390450$

June $7,350320$

July $9,390540$

August $7,431280$

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

Total Labor Cost $=$ $$5,359+($$$7\mathrm{.}40\backslash$times Employee Hours$)$

This information has been collected in the Microsoft Excel Online file. Open the spreadsheet, perform the required analysis, and input your answers in the questions below.

Open spreadsheet

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 the nearest whole dollar.

$2.$ Calculate total labor cost for September. Round your answer to the nearest whole dollar.