1. 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		$7,000		370
   	February		$9,899		560
   	March		$8,140		680
   	April		$9,787		620
   	May		$8,490		490
   	June		$7,531		360
   	July		$9,490		580
   	August		$7,450		320

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

   Total Labor Cost = $6836 + ($1.92 x Employee Hours)

   Required:

   Assume that 695 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.

   2. Calculate total labor cost for September. Round your answer to nearest whole number