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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
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 $6,800 390 February $9,699 580 March $7,940 680 April $9,587 540 May $8,290 510 June $7,331 380 July $9,290 600 $7,250 340 August Assume that this information was used to construct the following formula for monthly labor cost. Total Labor Cost $6560 ($2.03 x Employee Hours) Required: Assume that 675 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,
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