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		$6,900		430
	February		$9,799		620
	March		$8,040		720
	April		$9,687		680
	May		$8,390		550
	June		$7,431		420
	July		$9,390		640
	August		$7,350		380

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

Total Labor Cost = $6579 + ($2.03 x Employee Hours)

Required:

Assume that 665 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. $fill in the blank 1

2. Calculate total labor cost for September. Round your answer to nearest whole number. $fill in the blank 2