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 9,490 300 February 7,000 350 March 7,531 370 April 8,140 280 May 9,787 320 June 8,490 250 July 10,776 410 August 7,500 230 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 near near- Required: 1. Using the high-low method, calculate the fixed cost of labor. 18.2 x 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)

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 9,490 300 February 7,000 350 March 7,531 370 April 8,140 280 May 9,787 320 June 8,490 250 July 10,776 410 August 7,500 230 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 near near- Required: 1. Using the high-low method, calculate the fixed cost of labor. 18.2 x 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)

Name: Using High-Low to Calculate Fixed Cost, Calculate the Variable Rate,
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Description: Using High-Low to Calculate Fixed Cost, Calculate the Variable Rate, and Construct a Cost FunctionPizza Vesuvio makes specialty pizzas. Data for the past 8 months were collected:MonthLabor Cost($) Employee HoursJanuary9,490300February7,000350March7,

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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