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		$7,000			330
	February		9,899			520
	March		8,140			600
	April		9,787			580
	May		8,490			450
	June		7,531			320
	July		9,490			540
	August		7,450			280

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

Total Labor Cost = $6,845 + ($2.16 X Employee Hours)

Required:

Assume that 3,800 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. $fill in the blank

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

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