Pizza Vesuvio makes specialty pizzas. Vesuvio's controller wants to calculate the fixed and variable costs associated with labour used in the restaurant. Data for the past eight months were collected:

Month Labour Cost ($) Employee Hours

January 7,000 360

February 8,140 550

March 9,010 585

April 9,787 610

May 8,490 480

June 2,450 350

July 9,490 570

August 7,531 310

Required:

Using the high-low method, calculate the fixed cost of labour, calculate the variable rate per employee hour, and construct the cost formula for total labour cost.