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Accounting homework please help....? The Lakeshore Hotel's guest-days of occupancy and custodial supplies expense over the last seven months were: Month .....................Guest-Days of Occupancy ....................

Accounting homework please help....?

The Lakeshore Hotel's guest-days of occupancy and custodial supplies expense over the last seven months were:

Month .....................Guest-Days of Occupancy .................... custodial supplies expense

March ...............................4,000....... $7,500

April.................................. 6,500...................................... $8,250

May ................................. 8,000.................................. $10,500

June................................... 10,500................................ $12,000

July.................................... 12,000............................... $13,500

August................................ 9,000 ................................ $10,750

September......................... 7,500...................................... $9,750

*Guest-days is a measure of the overall activity at the hotel. For example, a guest who stays at the hotel for three days is counted as three guest-days.

1. Using the high-low method, estimate a cost formula for custodial supplies expense where X is the number of guest-days.

y=________________+$______________x

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 11,000 guest-days?

variable cost $________________

Fix cost $________________

total cost $_______________

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