Answered step by step
Verified Expert Solution
Link Copied!
Question
1 Approved Answer

Check my work The Cheyenne Hotel in Big Sky, Montana, has accumulated records of the total electrical costs of the hotel and the number of

image text in transcribed
image text in transcribed
Check my work The Cheyenne Hotel in Big Sky, Montana, has accumulated records of the total electrical costs of the hotel and the number of occupancy-days over the last year. An occupancy-day represents a room rented for one day. The hotel's business is highly seasonal, with peaks occurring during the ski season and in the summer Month January February March April June July August September October November December Occupancy Days Electrical Costa 2,830 $6.750 3.340 $ 7.410 3,650 $ 7,905 1.840 $5.520 750 $ 2.250 1.830 $5.490 3.890 $ 8,190 1,700 $9.410 2,260 $ 6,780 1,350 $4,050 4,060 290 Required: 1. Using the high-low method, estimate the fixed cost of electricity per month and the variable cost of electricity per occupancy day (Do not round your intermediate calculations. Round your Variable cost answer to 2 decimal places and Fixed cost element answer to nearest whole dollar amount.) Variable cost of electricity Fed cost of electricity per occupancy day per month 2. What other factors in addition to occupancy days are likely to affect the variation in electrical costs from month to month? (You may select more than one answer. Single click the box with the quespion mark to produce a check mark for a correct answer and double click the box with the question mark to emotv the box for a wrona answer. Anv boxes left with a question mark will be Seasonal factors like winter or summer 2 Fixed salary paid to hotel receptionist Prey 8 of B HI Next

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image
Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Accounting Texts And Cases

Authors: Robert Anthony, David Hawkins, Kenneth A. Merchant

12th Edition

0073100919, 978-0073100913

More Books

Students explore these related Accounting questions