Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Using High - Low to Calculate Predicted Total Variable Cost and Total Cost for Budgeted Output Pizza Vesuvio makes specialty pizzas. Data for the past

Using High-Low to Calculate Predicted Total Variable Cost and Total Cost for Budgeted Output
Pizza Vesuvio makes specialty pizzas. Data for the past 8 months were collected:
Month Labor Cost Employee Hours
January $7,300330
February $10,199520
March $8,440640
April $10,087580
May $8,790450
June $7,831320
July $9,790540
August $7,750280
Assume that this information was used to construct the following formula for monthly labor cost.
Total Labor Cost = $7212+($1.92 x Employee Hours)
Required:
Assume that 635 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.

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_2

Step: 3

blur-text-image_3

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

Analysing Financial Performance Using Integrated Ratio Analysis

Authors: Nic La Rosa

1st Edition

0367552523, 978-0367552527

More Books

Students also viewed these Accounting questions

Question

Discuss wearout and its causes.

Answered: 1 week ago