Using High-Low to Calculate Predicted Total Variable Cost and Total Cost for Budgeted Output

Pizza Vesuvio makes specialty pizzas. Data for the past eight months were collected:

Month	Labour Cost ($)	Employee Hours
January	$7,300	410
February	$8,440	600
March	$10,199	710
April	$10,087	660
May	$8,790	530
June	$7,750	400
July	$9,790	620
August	$7,831	360

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

Total Labour Cost = $4,319 + ($8.28 x Employee Hours)

Required:

Assume that 695 employee hours are budgeted for the month of September. Use the total labour cost formula for the following calculations:

1. Calculate total variable labour cost for September. Round your answer to nearest dollar.

2. Calculate total labour cost for September. Round your answer to nearest dollar.