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		340
	February		$9,999		530
	March		$8,240		610
	April		$9,887		590
	May		$8,590		460
	June		$7,631		330
	July		$9,590		550
	August		$7,550		290

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

Total Labor Cost = $6924 + ($2.16 x Employee Hours)

Required:

Assume that 715 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 1

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