Reference no: EM132639687

Pizza Vesuvio makes specialty pizzas. Vesuvio's controller wants to calculate the fixed and variable costs associated with labour used in the restaurant. Data for the past eight months were collected:

Month         Labour Cost ($)               Employee Hours

January            7,000                          360
February          8,140                          550
March             9,010                          585
April               9,787                          610
May               8,490                          480
June              2,450                          350
July               9,490                          570
August           7,531                          310

Required:

Problem 1: Using the high-low method, calculate the fixed cost of labour, calculate the variable rate per employee hour, and construct the cost formula for total labour cost.