1. Using the high-low method, calculate the fixed cost of labor. 2. Using the hi
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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.
Show Me How Print hem 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(S) Employee Hours 9,790 7,300 7,831 8,440 10,087 8,790 11,856 ,800 430 500 530 400 460 360 590 330 January une July Pizza Vesuvio's controller wants to calculate the foxed and variable costs associated with In your calculations, round the variable rate per employee hour to the Required: 1. Using the high-low method, calculate the fixed cost of labor fxed and variable costs associated with labor used in the restaurant nearest cent. If required, round your final answers to the nearest cent 2. Using the high-low method, calculate the variable rate X per employee hour 3. Using the high-low method, construct the cost formula for total labor cost Total labor costEmployee hours) Check My Work 1 more Check My Work uses remaining All work saved
Explanation / Answer
High-Low Method' In cost accounting can be used to compute Fixed cost and variable cost based on available data by forming an equation . Month Labor cost $ Employee hr January 9790 430 February 7300 500 March 7831 530 April 8440 400 May 10087 460 June 8790 360 July 11856 590 August 7800 330 High 11856 590 Low 7300 330 difference 4556 260 Total labor cost equation = fixed labor cost + Labor hr * labor rate Labor hr = 4556/260 17.52 Fixed cost = 11856-590*17.52 1519.20 Answer 1: Fixed cost of labor 1519.20 Answer 2: Variable rate 17.52 Answer 3: Cost formula Total labor cost = 1519.2+17.52*employee hr
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