Using High-Low to Calculate Fixed Cost, Calculate the Variable Rate, and Construct a Cost Function Pizza Vesuvio makes specialty pizzas. Data for the past eight months were collected:

Pizza Vesuvio's controller wants to calculate the fixed and variable costs associated with labor used in the restaurant.
In your calculations, round the variable rate per employee hour to the nearest cent. If required, use rounded calculations in intermediate steps. Round your final answers to the nearest cent.
Required:
1. Using the high-low method, calculate the fixed cost of labor.
2. Using the high-low method, calculate the variable rate.
3. Using the high-low method, construct the cost formula for total labor cost.

Month Labor Employee Cost($) Hours 7,300 January 390 February 8,440 580 March 10,199 680 April 10,087 640 May 8,790 510 June 7,750 380 July 9,790 600 7,831 August 340