Using High$-$Low to Calculate the Variable Rate, Calculate Fixed Cost, and Construct a Cost Function

Pizza Vesuvio makes specialty pizzas. Data for the past $8$ months were collected:

Pizza Vesuvio's controller wants to calculate the variable and fixed costs associated with labor used in the restaurant.

In your calculations, round the variable rate per employee hour to the nearest cent. If required, round your final answers to the nearest cent.

Required:

Using the high$-$low method, calculate the variable rate.

X per employee hour

Using the high$-$low method, calculate the total fixed labor cost.

$

Using the high$-$low method, construct the cost formula for total labor cost.

Total labor cost $=$

$x$ Employee hours