# 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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