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		$7,100			370
	February		9,999			560
	March		8,240			640
	April		9,887			620
	May		8,590			490
	June		7,631			360
	July		9,590			580
	August		7,550			320

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

Total Labor Cost = $6,859 + ($2.16 X Employee Hours)

Required:

Assume that 4,200 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.