Pizza Vesuvio makes specialty pizzas. Vesuvio's controller wants to calculate the fixed and variable costs associated with labor used in the restaurant. Data for the past eight months were collected:

Required:
Using the high-low method, calculate the fixed cost of labor, calculate the variable rate per employee hour, and construct the cost formula for total laborcost.

Transcribed Image Text:

Labor Cost ($) 7,000 8,140 9,010 9,787 8,490 2,450 9,490 7,531 Month January February March April May June July Aug ust Employee Hours 360 550 585 610 480 350 570 310