The Lakeshore Hotel S Occupancy Days And Custodial Supplies Expense Over The Last Seven Months Were As Follows Custodia 1 (32.42 KiB) Viewed 3 times
The Lakeshore Hotel S Occupancy Days And Custodial Supplies Expense Over The Last Seven Months Were As Follows Custodia 2 (27.86 KiB) Viewed 3 times
The Lakeshore Hotel's occupancy-days and custodial supplies expense over the last seven months were as follows: Custodial Supplies Expense $15,480 15,640 18,260 24,200 30,360 22,130 19,8701 Month March April May June July August September Occupancy- Days 18,700 13,060 15,840 Y = 30,600 28,200 19,600 15,900 Occupancy-days are a measure of the overall activity at the hotel. For example, when a guest stays at the hotel for three days, it is counted as three occupancy-days. Required: 1. Using the high-low method, estimate a cost formula for custodial supplies expense. (Round the "Fixed cost" to the nearest dollar amount and "Variable cost" to 2 decimal places.) 2. Using the cost formula you derived above, what amount of custodial supplies expense would you expect to be incurred at an occupancy level of 14,800 occupancy-days? (In your computations, round "Variable cost per unit" to 2 decimal places and final answers to the nearest dollar amount.)
53 Occupancy-days are a measure of the overall activity at the hotel. For example, when a guest stays at the hotel for three days, it is counted as three occupancy-days. Required: 1. Using the high-low method, estimate a cost formula for custodial supplies expense. (Round the "Fixed cost" to the nearest dollar amount and "Variable cost" to 2 decimal places.) Y= 2. Using the cost formula you derived above, what amount of custodial supplies expense would you expect to be incurred at an occupancy level of 14,800 occupancy-days? (In your computations, round "Variable cost per unit" to 2 decimal places and final answers to the nearest dollar amount.) Variable cost Fixed cost Total cost X Amount
Join a community of subject matter experts. Register for FREE to view solutions, replies, and use search function. Request answer by replying!