Pizza Vesuvio makes specialty Month Labor Cost ($) January 9,790 February 7,300 7,831 March April May June July August 8,440 10,087 8,790 13,542 7,800 Cost, Calculate the Variable Rate, and Construct a Cost Function pizzas. Data for the past 8 months were collected: Employee Hours 530 620 660 490 570 450 740 410 Pizza Vesuvio's controller wants to calculate the fixed and variable costs associated with labor used in the restaurant. In your calculations, round the variable rate per employee hour to the nearest cent. If required, round your final answers to the nearest cent. Required: 1. Using the high-low method, calculate the variable rate. 6,200 X per employee hour 2. Using the high-low method, calculate the fixed cost of labor.
Pizza Vesuvio makes specialty Month Labor Cost ($) January 9,790 February 7,300 7,831 March April May June July August 8,440 10,087 8,790 13,542 7,800 Cost, Calculate the Variable Rate, and Construct a Cost Function pizzas. Data for the past 8 months were collected: Employee Hours 530 620 660 490 570 450 740 410 Pizza Vesuvio's controller wants to calculate the fixed and variable costs associated with labor used in the restaurant. 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. 6,200 X per employee hour 2. Using the high-low method, calculate the fixed cost of labor.
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 20BEA: Using Regression to Calculate Fixed Cost, Calculate the Variable Rate, Construct a Cost Formula, and...
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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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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
April
May
June
July
August
9,790
7,300
7,831
8,440
10,087
8,790
13,542
7,800
4
530
620
660
490
570
450
740
410
Pizza Vesuvio's controller wants to calculate the fixed and variable costs associated with labor used in the restaurant.
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.
$
6,200 X per employee hour
2. Using the high-low method, calculate the fixed cost of labor.
3.90 X](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F089b9af0-2e6c-4067-9f0c-f45298961db0%2F4454f9c6-a8b1-4938-b9da-2099b47b44be%2Frv1dr3a_processed.jpeg&w=3840&q=75)
Transcribed Image Text:-
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
April
May
June
July
August
9,790
7,300
7,831
8,440
10,087
8,790
13,542
7,800
4
530
620
660
490
570
450
740
410
Pizza Vesuvio's controller wants to calculate the fixed and variable costs associated with labor used in the restaurant.
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.
$
6,200 X per employee hour
2. Using the high-low method, calculate the fixed cost of labor.
3.90 X
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