Refer to the information for Pizza Vesuvio on the previous page. Assume that this information was used to construct the following formula for monthly labor cost.

Total labor cost = $5,237 + ($7.40 x Employee hours)

Required:
Assume that 4,000 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 year.
2. Calculate total fixed labor cost for the year.
3. Calculate total labor cost for the coming year.

Transcribed Image Text:

Month Labor Cost January February March April May June July August 7,000 8,140 9,899 9,787 8,490 7,450 9.490 7,531 Employee Hours 360 550 630 610 480 350 570 310