USING HIGH-LOW TO CALCULATE PREDICTED TOTAL VARIABLE COST AND TOTAL COST FOR BUDGETED OUTPUT Refer to the Pizza Vesuvio company information in Cornerstone Exercise 14-16.

Assume that Pizza Vesuvio used this information to construct the following formula for monthly labor cost.

Total Labor Cost ¼ $5,200 þ ($7.52 3 Employee Hours)

Required:

Assume that 675 employee hours are budgeted for the month of September. Use the total labor cost formula for the following calculations:

. Calculate total variable labor cost for September.

. Calculate total labor cost for September.

Cornerstone Exercise