CengageNOWv2 | Online teaching and learning resource from Cengage Learning 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 370 560 650 620 490 360 580 320 January $7,300 February $10,199 March $8,440 April $10,087 May $8,790 June $7,831 July $9,790 August $7,750 Assume that this information was used to construct the following formula for monthly labor cost. Total Labor Cost = $7081 + ($2.09 x Employee Hours) Required: Assume that 685 employee hours are budgeted for the month of September. Use the total labor 1. Calculate total variable labor cost for September. Round your answer to nearest whole numb $ 2. Calculate total labor cost for September. Round your answer to nearest whole number.
CengageNOWv2 | Online teaching and learning resource from Cengage Learning 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 370 560 650 620 490 360 580 320 January $7,300 February $10,199 March $8,440 April $10,087 May $8,790 June $7,831 July $9,790 August $7,750 Assume that this information was used to construct the following formula for monthly labor cost. Total Labor Cost = $7081 + ($2.09 x Employee Hours) Required: Assume that 685 employee hours are budgeted for the month of September. Use the total labor 1. Calculate total variable labor cost for September. Round your answer to nearest whole numb $ 2. Calculate total labor cost for September. Round your answer to nearest whole number.
Chapter1: Financial Statements And Business Decisions
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CengageNOWv2 | Online teaching and learning resource from Cengage Learning
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:
Labor Cost Employee Hours
370
560
650
620
490
360
580
320
Month
January
$7,300
February $10,199
March
$8,440
April
$10,087
May
$8,790
June
$7,831
July
$9,790
August $7,750
Assume that this information was used to construct the following formula for monthly labor cost.
Total Labor Cost = $7081 + ($2.09 x Employee Hours)
Required:
Assume that 685 employee hours are budgeted for the month of September. Use the total labor cost
1. Calculate total variable labor cost for September. Round your answer to nearest whole number.
$
2. Calculate total labor cost for September. Round your answer to nearest whole number.
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