In your calculations, round the variable rate per employee hour to the mearest cent. If required, round your final answers to the nearest cent Required: . Using the high-low method, calculate the variable rate. 15.80✔ per employee hour 2. Using the high-low method, calculate the total fixed labor cost. . Using the high-low method construct the cost form

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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In your calculations, round the variable rate per employee hour to the
nearest cent. If required, round your final answers to the nearest cent.
Required:
1. Using the high-low method, calculate the variable rate.
15.80✔ per employee hour
2. Using the high-low method, calculate the total fixed labor cost.
$
3. Using the high-low method, construct the cost formula for total labor cost.
Total labor cost = $
Ixx Employee hours]
+ [$
Feedback
Transcribed Image Text:In your calculations, round the variable rate per employee hour to the nearest cent. If required, round your final answers to the nearest cent. Required: 1. Using the high-low method, calculate the variable rate. 15.80✔ per employee hour 2. Using the high-low method, calculate the total fixed labor cost. $ 3. Using the high-low method, construct the cost formula for total labor cost. Total labor cost = $ Ixx Employee hours] + [$ Feedback
Using High-Low to Calculate the Variable Rate, Calculate Fixed Cost, and Construct a
Cost Function
Pizza Vesuvio makes specialty pizzas. Data for the past 8 months were collected:
Labor
Employee
Cost ($)
Hours
January
9,490
February 7,000
March
7,531
April
8,140
May
9,787
June
8,490
July
13,416
August 7,500
Month
560
650
690
520
600
470
770
430
Pizza Vesuvio's controller wants to calculate the variable and fixed costs associated
with labor used in the restaurant.
Transcribed Image Text:Using High-Low to Calculate the Variable Rate, Calculate Fixed Cost, and Construct a Cost Function Pizza Vesuvio makes specialty pizzas. Data for the past 8 months were collected: Labor Employee Cost ($) Hours January 9,490 February 7,000 March 7,531 April 8,140 May 9,787 June 8,490 July 13,416 August 7,500 Month 560 650 690 520 600 470 770 430 Pizza Vesuvio's controller wants to calculate the variable and fixed costs associated with labor used in the restaurant.
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