Using High-Low to Calculate Predicted Total Variable Cost and Total Cost for a Time Period that Differs from the Data PeriodPizza Vesuvio makes specialty pizzas.
Using High-Low to Calculate Predicted Total Variable Cost and Total Cost for a Time Period that Differs from the Data PeriodPizza Vesuvio makes specialty pizzas. Data for the past eight months were collected:
Month
Labor Cost
Employee Hours
January
$7,100
390
February
8,240
580
March
9,999
700
April
9,887
640
May
8,590
510
June
7,550
380
July
9,590
600
August
7,631
340
Assume that this information was used to construct the following formula for monthly labor cost.
Total Labor Cost = $5394 + ($6.58 X Employee Hours)
Required:Assume that 4,200 employee hours are budgeted for the coming year. Use the total labor cost formula to make the following calculations:1. Calculate total variable labor cost for the coming year. Round your answer to the nearest dollar.
$2. Calculate total fixed labor cost for the coming year. Round your answer to the nearest dollar.
$3. Calculate total labor cost for the coming year. Round your answer to the nearest dollar.$
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The post Using High-Low to Calculate Predicted Total Variable Cost and Total Cost for a Time Period that Differs from the Data PeriodPizza Vesuvio makes specialty pizzas. appeared first on Superb Professors.
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