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# (Solved): Using High-Low to Calculate Predicted Total Variable Cost and Total Cost for a Time Period that Diff ...

Using High-Low to Calculate Predicted Total Variable Cost and Total Cost for a Time Period that Differs from the Data Period Pizza Vesuvio makes specialty pizzas. Data for the past 8 months were collected: Month Labor Cost Employee Hours January \$6,900 360 February 9,799 550 March 8,040 640 April 9,687 610 May 8,390 480 June 7,431 350 July 9,390 570 August 7,350 310 Assume that this information was used to construct the following formula for monthly labor cost. Total Labor Cost = \$6,702 + (\$2.09 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. \$fill in the blank 1 2. Calculate total fixed labor cost for the coming year. Round your answer to the nearest dollar. \$fill in the blank 2 3. Calculate total labor cost for the coming year. Round your answer to the nearest dollar. \$fill in the blank 3

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