Using High$-$Low to Calculate Predicted Total Variable Cost and Total Cost for a Time Period that Differs from the Data Period

Pizza Vesuvio makes specialty pizzas. Data for the past $8$ months were collected:

Month Labor Cost Employee Hours

January $$6,900360$

February $9,799550$

March $8,040640$

April $9,687610$

May $8,390480$

June $7,431350$

July $9,390570$

August $7,350310$

Assume that this information was used to construct the following formula for monthly labor cost.

Total Labor Cost $=$ $$6,702+($$$2\mathrm{.}09$ X Employee Hours$)$

Required:

Assume that $4,200$ employee hours are budgeted for the coming year. Use the total labor cost formula to make the following calculations:

$1.$ Calculate total variable labor cost for the coming year. Round your answer to the nearest dollar.

$fill in the blank $1$

$2.$ Calculate total fixed labor cost for the coming year. Round your answer to the nearest dollar.

$fill in the blank $2$

$3.$ Calculate total labor cost for the coming year. Round your answer to the nearest dollar.

$fill in the blank $3$