Using Regression to Calculate Fixed Cost, Calculate the Variable Rate, Construct a Cost Formula, and Determine Budgeted CostPizza Vesuvio makes specialty pizzas. Data for the past 8 months were collected:Employee HoursMonthJanuaryFebruaryMarchAprilMayJuneJulyAugustLabor Cost$7,0008,1409,8999,7878,4907,4509,4907,531Coefficients shown by a regression program for Pizza Vesuvio's data are:360550630600480350570310.Intercept4,497X Variable8.26In your calculations, round the variable rate per employee hour to the nearest cent.Required:Use the results of regression to make the following calculations:1. Calculate the fixed cost of labor.17,430 XCalculate the variable rate per employee hour.7.40 X per employee hour Required:Use the results of regression to make the following calculations:1. Calculate the fixed cost of labor.17,430 XCalculate the variable rate per employee hour.7.40 X per employee hour2. Construct the cost formula for total labor cost.Total labor cost-$ 5,237 X+($ 7.40 Xx Employee hours)3. Calculate the budgeted cost for next month, assuming that 705 employee hours are budgeted. Round answer to the nearest dollar.5,217 XFeedbackCheck My Work1. The measures of activity output are the intercept and X-variable.2. Use this fixed cost and variable rate in the cost formula.3. Use this fixed cost, and the variable rate in the cost formula multiplied by 705.

Direct labor is labor that is assigned to a specific product, cost center, or work order in the…

Using Regression to Calculate Fixed Cost, Calculate the Variable Rate, Construct a Cost Formula, and Determine Budgeted Cost Pizza Vesuvio makes specialty pizzas. Data for the past 8 months were collected: Employee Hours Month January February $7,000 8,140 9,899 April 9,787 May 8,490 June 7,450 July 9,490 August 7,531 Coefficients shown by a regression program for Pizza Vesuvio's data are: Intercept 4,497 X Variable Labor Cost March 8.26 360 550 630 600 480 350 570 310 In your calculations, round the variable rate per employee hour to the nearest cent.

Using Regression to Calculate Fixed Cost, Calculate the Variable Rate, Construct a Cost Formula, and Determine Budgeted Cost Pizza Vesuvio makes specialty pizzas. Data for the past 8 months were collected: Employee Hours Month January February $7,000 8,140 9,899 April 9,787 May 8,490 June 7,450 July 9,490 August 7,531 Coefficients shown by a regression program for Pizza Vesuvio's data are: Intercept 4,497 X Variable Labor Cost March 8.26 360 550 630 600 480 350 570 310 In your calculations, round the variable rate per employee hour to the nearest cent.

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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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 $6,800 390 February $9,699 580 March $7,940 670 April $9,587 640 May $8,290 510 June $7,331 380 July $9,290 600 August $7,250 340 Assume that this information was used to construct the following formula for monthly labor cost. Total Labor Cost = $6539 + ($2.09 x Employee Hours) Required: Assume that 705 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. 2. Calculate total labor cost for September. Round your answer to nearest whole number.
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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 $6,900 340 February $9,799 530 March $8,040 650 April $9,687 590 May $8,390 460 June $7,431 330 July $9,390 550 August $7,350 290 Assume that this information was used to construct the following formula for monthly labor cost. Total Labor Cost - $6793 + ($1.92 x Employee Hours) Required: Assume that 695 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.