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Pizza Vesuvio makes specialty pizzas. Data for the past 8 months were collected: Month Labor Cost Employee Hours January $7,000 370 February $9,899 560 March
Pizza Vesuvio makes specialty pizzas. Data for the past 8 months were collected:
Month | Labor Cost | Employee Hours | |||
January | $7,000 | 370 | |||
February | $9,899 | 560 | |||
March | $8,140 | 680 | |||
April | $9,787 | 620 | |||
May | $8,490 | 490 | |||
June | $7,531 | 360 | |||
July | $9,490 | 580 | |||
August | $7,450 | 320 |
Assume that this information was used to construct the following formula for monthly labor cost.
Total Labor Cost = $6836 + ($1.92 x Employee Hours) |
Required:
Assume that 695 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. Round your answer to nearest whole number.
2. Calculate total labor cost for September. Round your answer to nearest whole number.
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