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# 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 8 months were

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 8 months were collected:

Month Labor Cost Employee Hours January \$7,000 360 February 8,140 550 March 9,899 630 April 9,787 610 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 4,517 X Variable 8.20

In your calculations, round the variable rate per employee hour to the nearest cent.

Required:

Use the results of regression to make the following calculations:

Jun 24 2020 View more View Less