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		$7,100		330
	February		$9,999		520
	March		$8,240		630
	April		$9,887		580
	May		$8,590		450
	June		$7,631		320
	July		$9,590		540
	August		$7,550		280

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

Total Labor Cost = $6998 + ($1.97 x Employee Hours)

Required:

Assume that 705 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 number.

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