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Pizza Vesuvio makes specialty pizzas. Data for the past eight months were collected: Month Labour Cost ($) Employee Hours January $7,200 420 February $8,340 610
Pizza Vesuvio makes specialty pizzas. Data for the past eight months were collected:
Month | Labour Cost ($) | Employee Hours |
January | $7,200 | 420 |
February | $8,340 | 610 |
March | $10,099 | 700 |
April | $9,987 | 670 |
May | $8,690 | 540 |
June | $7,650 | 410 |
July | $9,690 | 630 |
August | $7,731 | 370 |
Assume that this information was used to construct the following formula for monthly labour cost.
Total Labour Cost = $3,951 + ($8.78 x Employee Hours) |
Required:
Assume that 635 employee hours are budgeted for the month of September. Use the total labour cost formula for the following calculations:
1. Calculate total variable labour cost for September. Round your answer to nearest dollar. $---------------------
2. Calculate total labour cost for September. Round your answer to nearest dollar. $------------------------
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