1. 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		$7,000			380
   	February		9,899			570
   	March		8,140			680
   	April		9,787			630
   	May		8,490			500
   	June		7,531			370
   	July		9,490			590
   	August		7,450			330

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

   Total Labor Cost = $6,800 + ($1.97 X Employee Hours)

   Required:

   Assume that 3,800 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. $