Using Regression to Calculate Fixed Cost, Calculate the Variable Rate, Construct a Cost Formula, and Determine Budgeted Cost
Pizza Vesuvio makes specialty pizzas. Data for the past eight months were collected:
| Month |
Labor Cost |
Employee Hours |
| January |
$7,000 |
|
|
360 |
| February |
8,140 |
|
|
550 |
| March |
9,899 |
|
|
630 |
| April |
9,787 |
|
|
590 |
| May |
8,490 |
|
|
480 |
| June |
7,450 |
|
|
350 |
| July |
9,490 |
|
|
570 |
| August |
7,531 |
|
|
310 |
Coefficients shown by a regression program for Pizza Vesuvio’s data are:
| Intercept |
4,481 |
| X Variable |
8.32 |
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 670 employee hours are budgeted. Round answer to the nearest dollar.
$
Why work with us?
Authenticity:
All of our papers are authentic, as each paper of ours is composed according to your unique requirements.
Confidentiality:
We value you data. Our company is extremely efficient in guarding the privacy of our clients.
100% Money Back Guarantee:
In the event you cancel your order, you get your money back as soon as possible, we give a 100% refund.
24/7 Support:
Our team members are available via email, live chat, and phone.
Revision Policy:
You can apply for a revision if you think your paper could be better. In this case, your paper will be revised either by the specialist assigned to you or by another writer.
How the Platform Works
- Click on 'Place Your Order' tab on the menu or click on 'Order Now' tab at the bottom and a new order page will appear
- Fill in your requirements depending on your needs under the 'PAPER DETAILS' area
- In the next section, fill in the academic level, required number of pages, paper deadline as provided in the drop-down menus.
- To enter your registration details, click on 'CREATE ACCOUNT & SIGN IN'. This step allows you to create an account with us for purposes of record-keeping. Click on 'PROCEED TO CHECK OUT' at the bottom of the page
- The next section requires you to fill in the payment details. Follow the guided process and soon your order will be available for our team to work on.
