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

Using High-Low to Calculate Predicted Total Variable Cost and Total Cost for a Time Period that Differs from the Data PeriodPizza Vesuvio makes specialty pizzas. Data for the past eight months were collected:

Month	Labor Cost	Employee Hours
January		$7,100	390
February		8,240	580
March		9,999	700
April		9,887	640
May		8,590	510
June		7,550	380
July		9,590	600
August		7,631	340

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

Total Labor Cost = $5394 + ($6.58 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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