Month Labor Cost Employee Hours January $6,900 340 February $9,799 530 March $8,040 650 April $9,687 590 May $8,390 460 June $7,431 330 July $9,390 550 August $7,350 290 Assume that this information was used to construct the following formula for monthly labor cost. Total Labor Cost $6793 + (41.92 x Employee Hours) Requiredi Assume that 695 employee hours are budgeted for the month of September. Use the total labor cost formula for the following calculations 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

Month Labor Cost Employee Hours January $6,900 340 February $9,799 530 March $8,040 650 April $9,687 590 May $8,390 460 June $7,431 330 July $9,390 550 August $7,350 290 Assume that this information was used to construct the following formula for monthly labor cost. Total Labor Cost $6793 + (41.92 x Employee Hours) Requiredi Assume that 695 employee hours are budgeted for the month of September. Use the total labor cost formula for the following calculations 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

Name: Show Me HowMonthLabor Cost Employee HoursJanuary$6,900340February$9,7
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Description: Show Me HowMonthLabor Cost Employee HoursJanuary$6,900340February$9,799530March$8,040650April$9,687590May$8,390460June$7,431330July$9,390550August$7,350290Assume that this information was used to construct the following formula for monthly labor cos

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter3: Cost Behavior And Cost Forecasting

Section: Chapter Questions

Problem 18BEA: Using High-Low to Calculate Predicted Total Variable Cost and Total Cost for Budgeted Output Refer...

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Concept explainers

Variance Analysis

In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance.

Standard Costing

The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.

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Question

Show Me How
Month
Labor Cost Employee Hours
January
$6,900
340
February
$9,799
530
March
$8,040
650
April
$9,687
590
May
$8,390
460
June
$7,431
330
July
$9,390
550
August
$7,350
290
Assume that this information was used to construct the following formula for monthly labor cost.
Total Labor Cost- 56793 + ($1.92 x Employee Hours)
Required:
Assurne that 695 employee hours are budgeted for the month of September. Use the total labor cost formula for the following calculations:
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
Check My Work
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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
January
$6,900
340
February
$9,799
530
March
$8,040
650
April
$9,687
590
May
$8,390
460
June
$7,431
330
July
$9,390
550
August
$7,350
290
Assume that this information was used to construct the following formula for monthly labor cost.
Total Labor Cost - $6793 + ($1.92 x Employee Hours)
Required:
Assume that 695 employee hours are budgeted for the month of September. Use the total labor cost formula for the following calculations:
1. Calculate total variable labor cost for September. Round your answer to nearest whole number.

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Using High-Low to Calculate Predicted Total Variable Cost and Total Cost for a Time Period That Differs from the Data Period Refer to the information for Pizza Vesuvio on the previous page. Assume that this information was used to construct the following formula for monthly labor cost. TotalLaborCost=5,237+(7.40EmployeeHours) Required: Assume that 4,000 employee hours are budgeted for the coming year. Use the total labor cost formula to make the following calculations: 1. Calculate total variable labor cost for the year. 2. Calculate total fixed labor cost for the year. 3. Calculate total labor cost for the coming year. Use the following information for Brief Exercises 3-17 through 3-20: Pizza Vesuvio makes specialty pizzas. Data for the past 8 months were collected:
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 February $8,440 March $10,199 April $10,087 May $8,790 June $7,750 July $9,790 August $7,831 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) 410 600 710 660 530 400 620 360 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.
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 $7,000 360 February 8,140 550 March 9,899 630 April 9,787 600 May 8,490 480 June 7,450 350 July 9,490 570 August 7,531 310 Coefficients shown by a regression program for Pizza Vesuvio's data are: Intercept 4,497 X Variable 8.26 In your calculations, round the variable rate per employee hour to the nearest cent. Required: Use the results of regression to make the following calculations: 1. Calculate the fixed cost of labor.$fill in the blank 1 Calculate the variable rate per employee hour.$fill in the blank 2per 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…
Uting 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 January February March April May June Jully August Labor Cost Employee Hours $7,100 8,240 9.999 6,590 7,550 9,590 7,631 360 550 660 610 480 Assume that this information was used to construct the following formula for monthly labor cost. 350 570 310 Total Labor Cost-$5,534+ ($6.77 x Employee Hours) This information has been collected in the Microsoft Excel Online file. Open the spreadsheet, perform the required analysis, and input your answers in the questions below
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V/T Using High-Low to Calculate Fixed Cost, Calculate the Variable Rate, and Construct a Cost Function Pizza Vesuvio makes specialty pizzas. Data for the past 8 months were collected: Month Labor Cost Employee Hours January February March $7,000 8,140 9,899 9,787 8,490 7,450 tot Feedback 360 550 April May June July 9,490 August 7,531 310 Pizza Vesuvio's controller wants to calculate the fixed and variable costs associated with labor used in th restaurant. ►Check My Work 630 610 480 350 In your calculations, round the variable rate per employee hour to the nearest cent. Required: 1. Using the high-low method, calculate the fixed cost of labor. 570 2. Using the high-low method, calculate the variable rate. per employee hour 3. Using the high-low method, construct the cost formula for total labor cost. Total labor cost = $ + [$ x Employee hours] Dreviou Ma
Use the Information below to answer the two questions that follow. A company provides delivery services and uses two activity measures for its costs: the miles driven and the number of customer order. For the most recent month, the company reported the following information: Actual $ 12,940 $ 22 per mile $ 13 per order Budgeted Fixed cost per month Varlable cost per mile Varlable cost per order $ 26 $ 12 Miles driven Customer orders Budgeted 74 480 Actual 64miles 460 orders Spending Varlance for total costs $203 Unfavorable Q. What was the company's budgeted fixed cost per month? ANS. S Q. What was the company's activity variance for the month? ANS. $ (Click to select) v
Using Regression to Calculate Fixed Cost, Calculate the Variable Rate, Construct a Cost Formula, and Determine Budgeted Cost Refer to the information for Pizza Vesuvio on the previous page. Coefficients shown by a regression program for Pizza Vesuvios data are: Required: Use the results of regression to make the following calculations: 1. Calculate the fixed cost of labor and the variable rate per employee hour. 2. Construct the cost formula for total labor cost. 3. Calculate the budgeted cost for next month, assuming that 675 employee hours are budgeted. (Note: Round answers to the nearest dollar.) Use the following information for Brief Exercises 3-17 through 3-20: Pizza Vesuvio makes specialty pizzas. Data for the past 8 months were collected:
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