Using Regression to calculate Fixed Cost Calculate the Variable Rate, Construct a Cost Formula, and Determine Budgeted Cost Pizza Vesuvio makes specialty pizzas. Data for the past 8 months were collected: Month Labor Cost Employee Hours January $6,900 360 February 8,140 550 March 9,899 630 April 9,787 600 May 8,490 480 June 7,450 350 July 9,490 570 August 7,531 310 Coefficients shown by a regression program for Pizza Vesuvio's data are: Intercept 4,431 X Variable 8.37 In your calculations, round the variable rate per employee hour to the nearest cent. Required: Use the results of regression to make the following calculations: 1. Calculate the fixed cost of labor. Calculate the variable rate per employee hour. per employee hour 2. Construct the cost formula for total labor cost Total labor cost = 1 + x Employee hours) 3. Calculate the budgeted cost for next month, assuming that 700 employee hours are budgeted. Round answer to the nearest dollar