Exercise 6A-1 (Algo) High-Low Method (L06-10] 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 Gewey-lectrical Month Day Coat January 2,630 $10,703 February ), 130 12,033 March 3,640 $13,593 Apel 1.090 4,469 May 1.770 $7.257 1.730 17.09) July 6.440 $16.950 August 3,60 13.815 September 2.170 58.897 October 1,210 4.961 November 1.790 $.7,339 December 2.910 12.013 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 Feed cost element answer to nearest whole dollar amount) Variable cost of electricity Poned cost of electroly por 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 question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer. Any bokes left with a question marke will be automatically graded as incorrect.) Systematic factors like guests, switching att fans and lights Number of days present in a month, 3 Income taxes paid on hotel income. Seasonal factors like winter or summer 2 Foed salary paid to hotel receptionist Exercise 6A-1 (Algo) High-Low Method (L06-10] 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 Gewey-lectrical Month Day Coat January 2,630 $10,703 February ), 130 12,033 March 3,640 $13,593 Apel 1.090 4,469 May 1.770 $7.257 1.730 17.09) July 6.440 $16.950 August 3,60 13.815 September 2.170 58.897 October 1,210 4.961 November 1.790 $.7,339 December 2.910 12.013 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 Feed cost element answer to nearest whole dollar amount) Variable cost of electricity Poned cost of electroly por 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 question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer. Any bokes left with a question marke will be automatically graded as incorrect.) Systematic factors like guests, switching att fans and lights Number of days present in a month, 3 Income taxes paid on hotel income. Seasonal factors like winter or summer 2 Foed salary paid to hotel receptionist
