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 9,787 590 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 4,415 X Variable 8.43 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. $fill in the blank 1 Calculate the variable rate per employee hour. $fill in the blank 2 per employee hour

2. Construct the cost formula for total labor cost. Total labor cost = $fill in the blank 3 + ($fill in the blank 4 Employee hours) 3. Calculate the budgeted cost for next month, assuming that 670 employee hours are budgeted. Round answer to the nearest dollar. $fill in the blank 5 Feedback