Using High-Low to Calculate Fixed Cost, Calculate the Variable Rate, and Construct a Cost Function Pizza Vesuvio makes specialty pizzas. Data for the past 8 months were collected: Month Labor Cost Employee Hours $7,000 360 January February 550 8,140 March 9,899 630 April 610 9,787 May 480 8,490 June 7,450 350 July 570 9,490 7,531 August 310 Pizza Vesuvio's controller wants to calculate the fixed and variable costs associated with labor used in the restaurant. In your calculations, round the variable rate per employee hour to the nearest cent. Required: 1. Using the high-low method, calculate the fixed cost of labor. 2. Using the high-low method, calculate the variable rate. $ per employee hour 3. Using the high-low method, construct the cost formula for total labor cost. [$ Total labor cost = $ Employee hours] X