Using High-Low to Calculate Fixed Cost, Calculate the Variable Rate, and Construct a Cost Function Pizza Vesuvio makes specialty pizzas. Data for the past 8 months were collected: Month Labor Cost($) Employee Hours January 9,790 360 February 7,300 420 March 7,831 450 April 8,440 340 May 10,087 390 June 8,790 310 July 11,496 500 August 7,800 280 Pizza Vesuvio's controller wants to calculate the fixed and variable costs associated with labor used in the restaurant. In your calculations, round the variable rate per employee hour to the nearest cent. If required, round your final answers to the nearest cent. Required: 1. Using the high-low method, calculate the fixed cost of labor. 2. Using the high-low method, calculate the variable rate. | per employee hour 3. Using the high-low method, construct the cost formula for total labor cost. Total labor cost - |× Employee hours)

Using High-Low to Calculate Fixed Cost, Calculate the Variable Rate, and Construct a Cost Function Pizza Vesuvio makes specialty pizzas. Data for the past 8 months were collected: Month Labor Cost($) Employee Hours January 9,790 360 February 7,300 420 March 7,831 450 April 8,440 340 May 10,087 390 June 8,790 310 July 11,496 500 August 7,800 280 Pizza Vesuvio's controller wants to calculate the fixed and variable costs associated with labor used in the restaurant. In your calculations, round the variable rate per employee hour to the nearest cent. If required, round your final answers to the nearest cent. Required: 1. Using the high-low method, calculate the fixed cost of labor. 2. Using the high-low method, calculate the variable rate. | per employee hour 3. Using the high-low method, construct the cost formula for total labor cost. Total labor cost - |× Employee hours)

Name: Using High-Low to Calculate Fixed Cost, Calculate the Variable Rate,
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Description: Using High-Low to Calculate Fixed Cost, Calculate the Variable Rate, and Construct a Cost FunctionPizza Vesuvio makes specialty pizzas. Data for the past 8 months were collected:Month Labor Cost($) Employee HoursJanuary9,790360February7,300420March7

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 Fixed Cost, Calculate the Variable Rate, and Construct a Cost Function Pizza Vesuvio makes specialty pizzas. Data for the past 8 months were collected: Month Labor Cost($) Employee Hours January 9,490 550 February 7,000 630 March 7,531 670 April 8,140 500 May 9,787 590 June 8,490 460 July 12,872 760 August 7,500 420 Pizza Vesuvio's controller wants to calculate the fixed and variable costs associated with labor used in the restaurant. In your calculations, round the variable rate per employee hour to the nearest cent. If required, round your final answers to the nearest cent. Required: 1. Using the high-low method, calculate the fixed cost of labor.$________ 2. Using the high-low method, calculate the variable rate.$_________ 3. Using the high-low method, construct the cost formula for total labor cost. Total labor cost = $ _______ + ($__________ × Employee hours)