Question
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
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 $6,800 420 February $9,699 610 March $7,940 710 April $9,587 670 May $8,290 540 June $7,331 410 July $9,290 630 August $7,250 370 Assume that this information was used to construct the following formula for monthly labor cost. Total Labor Cost = $6499 + ($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.
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