Chapter 3 Cost Behavior and Forecasting Brief Exercise 3-17 Using High-Low to Calculate Fixed Cost, Calculate the Variable Rate, and Construct a Cost Function Refer to the information for Pizza Vesuvio on the previous page. Pizza Vesuvio's controller wants to calculate the fixed and variable costs associated with labor used in the restaurant. Required: Using the high-low method, calculate the fixed cost of labor, calculate the variable rate per em- ployee hour, and construct the cost formula for total labor cost. 550 Use the following information for Brief Exercises 3-17 through 3-20: Pizza Vesuvio makes specialty pizzas. Data for the past 8 months were collected: Month Labor Cost Employee Hours January $7,000 360 February 8,140 March 9,899 630 April 9,787 610 May 8,490 480 June 7,450 350 July 9.490 570 August 7,531 310 O Brief Exercise 3-18 Using High-Low to Calculate Predicted Total Variable Cost and Total Cost for Budgeted Output 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: Wonen Assume that 675 employee hours are budgeted for the month of September. Use the total labor cost formula for the following calculations: 1. Calculate total variable labor cost for September. 2. Calculate total labor cost for September. * OBJ Exar Brief Exercise 3-19 Using High-Low to Calculate Predicted Total Variable Cost and Total Cost for a Time Period That Differs from the Data Period 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 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