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		350
	February		$9,999		540
	March		$8,240		630
	April		$9,887		600
	May		$8,590		470
	June		$7,631		340
	July		$9,590		560
	August		$7,550		300

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

Total Labor Cost = $6923 + ($2.09 x Employee Hours)

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 nearest whole number. $fill in the blank

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