Reference no: EM131225571
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 eight months were collected:
Months
|
Labor cost
|
Employee Hours
|
|
January
|
$7000
|
|
390
|
|
February
|
8,140
|
|
580
|
|
March
|
9,899
|
|
700
|
|
April
|
9,787
|
|
640
|
|
May
|
8,490
|
|
510
|
|
June
|
7,450
|
|
380
|
|
July
|
9,490
|
|
600
|
|
August
|
7,351
|
|
340
|
Assume that this information was used to construct the following formula for monthly labor cost.
Total Labor Cost = $5,294 + ($6.58 X Employee Hours)
Required:
Assume that 4,000 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. $
2. Calculate total fixed labor cost for the coming year. Round your answer to the nearest dollar. $
3. Calculate total labor cost for the coming year. Round your answer to the nearest dollar.
Coefficients shown by a regression program for Pizza Vesuvio's data are:
Intercept 4,431
X Variable 8.37
Required:
Use the results of regression to make the following calculations:
1. Calculate the fixed cost of labor. $
Calculate the variable rate per employee hour. $ per employee hour
2. Construct the cost formula for total labor cost.
Total labor cost = $ + ($ × Employee hours)
3. Calculate the budgeted cost for next month, assuming that 695 employee hours are budgeted. Round answer to the nearest dollar. $
How is a system different from a system change
: A system is a collection of parts that interact with each other to form another thing where the parts now work together. How is a system different from a system change? Now put the definitions of system and systems thinking into your own words and gi..
|
Sale of milk in plastic nonrefillable-nonreusable container
: The Minnesota legislature passed a statute banning the sale of milk in plastic nonrefillable, nonreusable containers. However, it allowed sales of milk in other nonrefillable, nonreusable containers such as paperboard cartons. Under that test, is the..
|
Granting the request offsets the potential risks
: After a status meeting, a client approaches you (as the project manager) with a request to incorporate an additional feature into the software your team is developing. She suggests that such a minor change can be 'absorbed' into the existing budget a..
|
Accounts receivable account represented
: The Redwood Company determined that its balance in its Accounts Receivable account represented 23% of total assets and that cost of goods sold represented 38% of total revenue. These findings are the result of
|
Calculate total variable labor cost for the coming year
: 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 eight months were collected: Calculate total variable labor cost for ..
|
What is the bottom line net income for the company
: In its latest set of financials, a company presents the following information regarding its income statement: Assuming these 6 items are the only income statement entries provided by the company, what is the bottom line net income for the company?
|
Research the website of one multinational company in detail
: BOIITMG306 International Management Assignment - Group Research and Presentation. Students are required to research the website of one multinational company in detail. Research information must include the growth, the strategic planning, organisati..
|
Prepare a common size comparative balance sheet
: Prepare a common size comparative balance sheet for each of the companies - Prepare all relevant financial statement ratios for each company and which company do you think has a better liquid position? Why?
|
Derive the expression for the loop gain
: The small-signal parameters of the transistors in the circuit in Figure are hFE and VA = ∞. - Derive the expression for the loop gain.
|