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

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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

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
March
April
May
June
July
August
Labor Cost
$7,000
8,140
9,899
9,787
8,490
7,450
9,490
7,531
Coefficients shown by a regression program for Pizza Vesuvio's data are:
360
550
630
600
480
350
570
310.
Intercept
4,497
X Variable
8.26
In 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 X
Calculate 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 X
Calculate the variable rate per employee hour.
7.40 X per employee hour
2. 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 X
Feedback
Check My Work
1. 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.

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