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Lorenzo operates a brushless car wash. Incoming cars are put on an automatic, continuously moving conveyor belt. A car is washed as the conveyor belt
Lorenzo operates a brushless car wash. Incoming cars are put on an automatic, continuously moving conveyor belt. A car is washed as the conveyor belt cames it from the start station to the finish station. After the car moves off the conveyor belt, workers dry it and clean and vacuurn the inside. Workers are managed by a single supervisor Lorenzo's accountant wants to estimate costs in December, when 11,450 cars are expected to be washed. She tried two different methods to estimate December costs, account analysis and high-low, with number of cars washed as the independent variable for both methods To estimate the cost function parameters using account analysis, she analyzed actual casts in Junc, when 9,200 cars were washed. Her analysis revealed the following total fixed costs and total variable costs for each cast item Cast Item Soap, cloths, and supplies Variable Cost $1,640 Water Total Cost $1,640 $2,460 $24,970 $10,330 $3,000 Car Wash labor Power for conveyor Supervisor and cashier $22,960 $8,200 $0 To estimate the cost function parameters using high-low, she used the following tatal cast and activity data from July and August Cost Item Saap, cloths, and supplies Water Car wash labar Power for conveyor Supervisor and cashier Total Cars washed July $3,500 $1,800 $23,900 $11,600 $3,900 August $4,600 $2,300 $29,900 $14,100 $3,800 $54,700 11,500 $44,700 9,000 REQUIRED [ROUND PER-UNIT COSTS TO TWO DECIMAL PLACES AND TOTAL COSTS TO THE NEAREST DOLLAR.] Part A (6 trias; 5 points) 1. Using account analysis, what is the accountant's estimate of total fixed costs for December? 2. Using account analysis, what is the accountant's estimate of variable costs per unit for December? Submit Answer Tries 0/6 Part B (6 tries; 5 points) 1. Using the high-low method, what is the accountant's estimate of total fixed costs for December? 2. Using the high-low method, what is the accountant's estimate of total variable costs for December? Submit Answer Tres 0/6
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