Question: Using High-Low to Calculate Predicted Total Variable Cost and Total Cost for a Time Period that differs from the Data Period Pizza Vesuvio makes specialty

Using High-Low to Calculate Predicted Total Variable Cost and Total Cost

Using High-Low to Calculate Predicted Total Variable Cost and Total Cost for a Time Period that differs from the Data Period Pizza Vesuvio makes specialty pizzas. Data for the past 8 months were collected: Month Labor Cost Employee Hours January $6,900 420 February 9,799 610 March 8,040 730 April 9,687 670 May 8,390 540 June 7,431 410 July 9,390 630 August 7,350 370 Assume that this information was used to construct the following formula for monthly labor cost. Total Labor Cost = $6,640 + ($1.92 X Employee Hours) Required: Assume that 4,200 employee hours are budgeted for the coming year. Use the total labor cost formula to make the following calculations: 1. Calculate total variable labor cost for the coming year. Round your answer to the nearest dollar. 2. Calculate total fixed labor cost for the coming year. Round your answer to the nearest dollar. 3. Calculate total labor cost for the coming year. Round your answer to the nearest dollar

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