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MCS,PHD
Argosy University/ Phoniex University/
Nov-2005 - Oct-2011
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Phoniex University
Oct-2001 - Nov-2016
Cornerstone Exercise 14-19 USING REGRESSION TO CALCULATE FIXED COST, CALCULATE THE VARIABLE RATE, CONSTRUCT A COST FORMULA, AND DETERMINE BUDGETED COST
Refer to the Pizza Vesuvio company information in Cornerstone Exercise 14-16. Coeffi- cients shown by a regression program for this data are:
Â
Intercept                      1,145
X Variable                  13.82
Â
Â
Required:
Use the results of regression to make the following calculations:
1.       Calculate the fixed cost of labor and the variable rate per employee hour.
2.       Construct the cost formula for total labor cost.
3.       Calculate the budgeted cost for next month, assuming that 675 employee hours are budgeted. Round answers to the nearest dollar.
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