EXERCISE 2-5 High-Low Method [Los 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 out for one day. The hoters business is highly seasonal, with peaks occurring during the ski season and in the summer Days Electrical Costs 1.736 1,904 2,356 4,127 14,207 6,083 2,857 1,871 12,096 February March -.. June July August 744 2,108 2,400 $G,148 2,091 $1,568 12,454 $3.529 November.. 1,364 Using the high-low method, estimate the fixed cost of electricity per month and the variable cost of electricity per occupancy-day. Round off the fixed cost to the nearest whole dollar and the variable cost to the nearest whole cent 1. 2 What other factors other than occupancy-days are likely to affect the variation in electrical costs from month to month? EXERCISE 2-9 Cost Terminology for Manufacturers [LO2, LO3) Arden Company reported the following costs and expenses for the most recent month: ..$80,000 Direct iabor Manutacturing overhead Seling expenses . ...$19,000 22,000 35,000 Required 1. 2. 3. What is the total amount of product costs? What is the total amount of period costs? What is the total amount of conversion costs? 4. What is the total amount of prime costs