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 January 9,790 February 7,300 560 650 March 7,831 690 April 8,440 520 May 10,087 600 June 8,790 470 July 13,444 770 430 August 7,800 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. If required, round your final answers to the nearest cent. Required: 1. Using the high-low method, calculate the fixed cost of labor. 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 = $ + ($ x Employee hours) Using Regression to calculate Fixed Cost Calculate the variable Rate, Construct a Cost Formula, and Determine Budgeted Cost Pizza Vesuvio makes specialty pizzas. Data for the past 8 months were collected: Labor Cost Employee Hours January $7,100 Month 360 February 8,140 550 March 9,899 630 April 9,787 610 May 8,490 480 June 7,450 350 310 July 9,490 570 August 7,531 Coefficients shown by a regression program for Pizza Vesuvio's data are: Intercept 4,582 X Variable 8.09 In your calculations, round the variable rate per employee hour to the nearest cent. Required: Use the results of regression to make the following calculations: Required: Use the results of regression to make the following calculations: 1. Calculate the fixed cost of labor. Calculate the variable rate per employee hour. per employee hour 2. Construct the cost formula for total labor cost. Total labor cost = $1 * Employee hours) 3. Calculate the budgeted cost for next month, assuming that 705 employee hours are budgeted. Round answer to the nearest dollar