Using Regression to Calculate Fixed Cost, Calculate the Variable Rate, Construct a Cost Formula, and Determine Budgeted Cost

Pizza Vesuvio makes specialty pizzas. Data for the past $8$ months were collected:

$\backslash$table$[[$Month$,$Labor Cost,Employee Hours$],[$January$,$$$7,000,360],[$February$,8,140,550],[$March$,9,899,630],[$April$,9,787,610],[$May$,8,490,480],[$June$,7,450,350],[$July$,9,490,570],[$August$,7,531,310]]$

Coefficients shown by a regression program for Pizza Vesuvio's data are:

Intercept

$4,517$

X Variable

$8\mathrm{.}20$

In your calculations, round the variable rate per employee hour to the nearest cent.

Required:

Use the results of regression to make the following calculations:

Calculate the fixed cost of labor.

$

Calculate the variable rate per employee hour.

$ per employee hour

Construct the cost formula for total labor cost.

Total labor cost Employee hours Using Regression to Calculate Fixed Cost, Calculate the Variable Rate, Construct a Cost Formula, and Determine Budgeted Cost

Pizza Vesuvio makes specialty pizzas. Data for the past $8$ months were collected:

$\backslash$table$[[$Month$,$Labor Cost,Employee Hours$],[$January$,$$$7,000,360],[$February$,8,140,550],[$March$,9,899,630],[$April$,9,787,610],[$May$,8,490,480],[$June$,7,450,350],[$July$,9,490,570],[$August$,7,531,310]]$

Coefficients shown by a regression program for Pizza Vesuvio's data are:

Intercept

$4,517$

X Variable

$8\mathrm{.}20$

In your calculations, round the variable rate per employee hour to the nearest cent.

Required:

Use the results of regression to make the following calculations:

Calculate the fixed cost of labor.

Required:

Use the results of regression to make the following calculations:

Calculate the fixed cost of labor.

$

Calculate the variable rate per employee hour.

per employee hour

Construct the cost formula for total labor cost.

Total labor cost Employee hours