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		$6,900			380
	February		9,799			570
	March		8,040			650
	April		9,687			630
	May		8,390			500
	June		7,431			370
	July		9,390			590
	August		7,350			330

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

Total Labor Cost = $6,637 + ($2.16 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. $

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

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