2 Snicks Board Shop is trying to better understand the behavior of their utility expenses. They have accumulated utility expenses over the last 9 months and believe hours open per month are a good predictor of expense behavior. Utility expenses include electricity, gas, and water. Use the file ch7-11 to complete a cost prediction worksheet. The worksheet should do the following:

1. Using the Hi-Lo method, calculate variable cost per unit sold, fixed costs, and a prediction of utility expense when they are open 230 hours in a month.

2. Using the Least Squares/Regression method, calculate variable cost per unit sold, fixed costs, and a prediction of utility expense when they are open 230 hours in a month.

3. Display a chart of selling expense/units sold with a trend line. (Be sure to modify each axis so your scatter diagram is better displayed, as you did earlier in this chapter.)

3 During a recent year, Snicks Board Shop had sales on account of $45,000, collections of $45,500, write-offs of $800, a beginning balance in accounts receivable of $5,000, and a beginning balance in the allowance for uncollectible accounts of $300. At year-end $2,400 of accounts receivable were current, $700 were 030 days past due, $300 were 3160 days past due, $200 were 6190 days past due, and $100 were over 90 days past due. The company believes 1.5 percent of sales will not be collected. They also have experience suggesting that 2 percent of all current receivables, 11 percent of receivables 030 days past due, 16 percent of receivables 3160 days past due, 25 percent of receivables 6190 days past due, and 50 percent of receivables over 90 days past due will not be collected. Using the file ch7-12, complete the allowance for uncollectible accounts analysis for both standard methods.

Please provide with th e the formulas

Month Jan. Feb. Mar Apr Hours Open Utility expense 200 3000 190 3100 185 2700 2600 2850 175 2800 3350 3400 290 5000 May 165 Jun Jul Aug Sep 225 Month Jan. Feb. Mar Apr Hours Open Utility expense 200 3000 190 3100 185 2700 2600 2850 175 2800 3350 3400 290 5000 May 165 Jun Jul Aug Sep 225