Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Pizza Vesuvio makes specialty pizzas. Data for the past 8 months were collected: Month Labor Cost($) Employee Hours January 9,690 460 February 7,200 530 March

image text in transcribed

Pizza Vesuvio makes specialty pizzas. Data for the past 8 months were collected: Month Labor Cost($) Employee Hours January 9,690 460 February 7,200 530 March 7,731 560 April 8,340 420 May 9,987 490 June 8,690 390 July 12,348 630 August 7,700 350 Pizza Vesuvio's controller wants to calculate the fixed and variable costs associated with labor used in the restaurant. In your calculations, round the variable rate per employee hour to the nearest cent. If required, round your final answers to the nearest cent. Required: 1. Using the high-low method, calculate the fixed cost of labor. $ 2. Using the high-low method, calculate the variable rate. per employee hour 3. Using the high-low method, construct the cost formula for total labor cost. Total labor cost = + ($ x Employee hours)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Auditing Quality Management Systems Keeping Your Quality Management System Relevant

Authors: Herne European Consultancy, Ray Tricker

1st Edition

0992758521, 978-0992758523

More Books

Students also viewed these Accounting questions

Question

What will you do or say to Anthony about this issue?

Answered: 1 week ago