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 8 months

image text in transcribed
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 $7,100 330 February $9,999 520 March $8,240 610 April $9,887 580 May $8,590 450 June $7,631 320 July $9,590 540 August $7,550 280 Assume that this information was used to construct the following formula for monthly labor cost. Total Labor Cost = $6965 + ($2.09 x Employee Hours) Required: Assume that 645 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

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

Assurance And Auditing

Authors: Thomas Nelson

1st Edition

0170111342, 978-0170111348

More Books

Students also viewed these Accounting questions