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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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:
Using High-Low to Calculate Predicted Total Variable Cost and Total Cost for Budgeted Output 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 675 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. 2. Calculate total labor cost for September.
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.
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Nathan Davidson, financial analyst at LMN Corporation, is examining the behavior of quarterly utility costs for budgeting purposes. Davidson collects the following data on machine-hours worked and utility costs for the past 8 quarters: (Click the icon to view the data.) Read the requirements. Requirement 1. Estimate the cost function for the quarterly data using the high-low method. (Complete all answer boxes.) Data table + Quarter Machine-Hours Utility Costs Quarter 1 100,000 $ 265,000 Quarter 2 55,000 200,000 Quarter 3 90,000 250,000 Quarter 4 105,000 280,000 Quarter 5 70,000 220,000 Quarter 6 95,000 260,000 Quarter 7 85,000 275,000 Quarter 8 80,000 245,000 Print Done - ☑ Requirements 1. Estimate the cost function for the quarterly data using the high-low method. 2. Plot and comment on the estimated cost function. 3. Davidson anticipates that LMN will operate machines for 105,000 hours in quarter 9. Calculate the predicted utility costs in quarter 9 using the cost function estimated…
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