1. 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 eight months were collected:

   Month	Labour Cost ($)	Employee Hours
   January	7,100	360
   February	8,140	550
   March	9,899	630
   April	9,787	590
   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	4,547
   X Variable	8.21

   Required:

   Use the results of regression to make the following calculations:

   1. Calculate the fixed cost of labour.

   Calculate the variable rate per employee hour. If required, round to the nearest cent. $fill in the blank 2per employee hour

   2. Construct the cost formula for total labour cost. Total labour cost =

   3. Calculate the budgeted cost for next month, assuming that 705 employee hours are budgeted. Round answer to the nearest dollar.