Required:Assume that 665 employee hours are budgeted for the month of September. Use the total labor cost formula for the following calculations1. Calculate total variable labor cost for September. Round your answer to the nearest whole dollar.2. Calculate total labor cost for September. Round your answer to the nearest whole dollar. Uting High-Low to Calculate Predicted Total Variable Cost and Total Cost for Budgeted OutputPizza Vesuvio makes specialty pizzas. Data for the past 8 months were collectedMonthJanuaryFebruaryMarchAprilMayJuneJullyAugustLabor Cost Employee Hours$7,1008,2409.9996,5907,5509,5907,631360550660610480Assume that this information was used to construct the following formula for monthly labor cost.350570310Total 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

The total costs incurred for production are classified as fixed and variable costs. The high-low…

Required: Assume that 665 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 the nearest whole dollar. 2. Calculate total labor cost for September. Round your answer to the nearest whole dollar

Required: Assume that 665 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 the nearest whole dollar. 2. Calculate total labor cost for September. Round your answer to the nearest whole dollar

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

Master Budget

A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.

Sales Budget and Selling

A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.

Question

Required:
Assume that 665 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 the nearest whole dollar.
2. Calculate total labor cost for September. Round your answer to the nearest whole dollar.

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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