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	$6,900		340
February	8,040		530
March	9,799		650
April	9,687		590
May	8,390		460
June	7,350		330
July	9,390		550
August	7,431		290

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

Total Labor Cost = $5,523 + ($6.58 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.

Required:

Assume that 685 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.