Pizza Vesuvio makes specialty pizzas. Data for the 8 months were collected. 

Coefficients shown by a regression program for Pizza Vesuvio’s data are: Intercept 4,517 X Variable 8.20

Required:

Use the results of regression to make the following calculations:
1. Calculate the variable rate per employee hour and the total fixed labor cost.
2. Construct the cost formula for total labor cost.
3. Calculate the budgeted cost for next month, assuming that 675 employee hours are budgeted. (Note: Round answers to the nearest dollar.)

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Month January February March April May June July August Labor Cost $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