Using High-Low to Calculate Predicted Total Variable Cost and Total Cost for a Time Period...
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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 $7,300 400 February 10,199 590 March 8,440 680 650 April 10,087 May 8,790 520 June 7,831 July 9,790 390 610 350 August 7,750 Assume that this information was used to construct the following formula for monthly labor cost. Total Labor Cost = $7,019 + ($2.09 X Employee Hours) Required: Assume that 3,900 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
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