Homework Answers
1.
Total variable labor cost = 3,900 X $2.16 = $8,424
2.
Total fixed labor cost does not change with change in employee hours. Total fixed labor cost = $6,637
3.
Total labor cost = $8,424 + $6,637 = $15,061
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#1
#2
#3
Please show work
Using High-Low to Calculate Fixed Cost, Calculate the Variable Rate, and Construct a Cost Function Pizza Vesuvio makes specialty pizzas. Data for the past 8 months were collected: Month Labor Cost($) Employee Hours January 290 9,490 7,000 February 330 March 7,531 April 8,140 May 9,787 310 240 June 8,490 July 10,776 400 August 7,500 220 Pizza Vesuvio's controller wants to calculate the fixed and variable costs associated with labor used in the restaurant. In...
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