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: Labor Cost Employee Hours Month January February $6,800 9,699 7,940 9,587 8,290 7,331 9,290 7,250 Assume that this information was used to construct the following formula for monthly labor cost. Total Labor Cost = $6,519 + ($2.03 X Employee Hours) March April May June July August 410 Required: 600 700 660 530 400 620 360 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. 7,714 2. Calculate total fixed labor cost for the coming year. Round your answer to the nearest dollar. 6,519 X 3. Calculate total labor cost for the coming year. Round your answer to the nearest dollar. 7,940 X

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: Assume that this information was used to construct the following formula for monthly laber cost. Total Labor Cost =$6,519+($2,03 Employee Hours ) Required: Assume that 3,800 emplovee 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 doliar, 2. Calculate total fixed labor cost for the coming year. Round your answer to the nearest dollar: x 3. Calculate total labor cost for the coming year. Round your answer to the nearest dollar. x