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Question - Using High-Low to Calculate Predicted Total Variable Cost and Total Cost for Budgeted Output Pizza Vesuvio makes specialty pizzas. Data for the past 8 months were collected:
Month Labor Cost Employee Hours
January $6,900 410
February $9,799 600
March $8,040 720
April $9,687 660
May $8,390 530
June $7,431 400
July $9,390 620
August $7,350 360
Assume that this information was used to construct the following formula for monthly labor cost. Total Labor Cost = $6659 + ($1.92 x Employee Hours).
Required - Assume that 695 employee hours are budgeted for the month of September. Use the total labor cost formula for the following calculations:
1. Calculate total variable labor cost for September. Round your answer to nearest whole number.
2. Calculate total labor cost for September. Round your answer to nearest whole number.
Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest. How much control does the Fed have over this longer real rate?
Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.
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