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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 $7,000 430 February $9,899 620 March $ 8,140 730 April $9, 787 680 May $8,490 550 June $7,531 420 July $9, 490 640 August $ 7,450 380 Assume that this information was used to construct the following formula for monthly labor cost. Total Labor Cost = $6701 + ($1.97 x Employee Hours) Required: Assume that 655 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. $fill in the blank 1 2. Calculate total labor cost for September. Round your answer to nearest whole number. $fill in the blank 2

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 $7,000 430 February $9,899 620 March $ 8,140 730 April $9, 787 680 May $8,490 550 June $7,531 420 July $9, 490 640 August $ 7,450 380 Assume that this information was used to construct the following formula for monthly labor cost. Total Labor Cost = $6701 + ($1.97 x Employee Hours) Required: Assume that 655 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. $fill in the blank 1 2. Calculate total labor cost for September. Round your answer to nearest whole number. $fill in the blank 2

Managerial Accounting: The Cornerstone of Business Decision-Making
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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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 $7,000 430 February $9,899 620 March $ 8,140 730 April $9, 787 680 May $8,490 550 June $7,531 420 July $9, 490 640 August $ 7,450 380 Assume that this information was used to construct the following formula for monthly labor cost. Total Labor Cost = $6701 + ($1.97 x Employee Hours) Required: Assume that 655 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. $fill in the blank 1 2. Calculate total labor cost for September. Round your answer to nearest whole number. $fill in the blank 2
Transcribed Image Text: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 $7,000 430 February $9,899 620 March $ 8,140 730 April $9, 787 680 May $8,490 550 June $7,531 420 July $9, 490 640 August $ 7,450 380 Assume that this information was used to construct the following formula for monthly labor cost. Total Labor Cost = $6701 + ($1.97 x Employee Hours) Required: Assume that 655 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. $fill in the blank 1 2. Calculate total labor cost for September. Round your answer to nearest whole number. $fill in the blank 2
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