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

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: Labor Cost Employee Hours Month 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 = $6637 + ($2.16 x Employee Hours) Required: Assume that 715 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

Fundamentals of Advanced Accounting

Authors: Joe Ben Hoyle, Thomas Schaefer, Timothy Doupnik

6th edition

0-07-786223-6, 101259095592, 13: 978-0-07-7, 13978125909559, 978-0077862237

More Books

Students also viewed these Accounting questions