Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Please answer 1 and 2 The Lakeshore Hotel's occupancy-days and custodial supplies expense over the last seven months were as follows: Custodial Occupancy- Supplies Month

Please answer 1 and 2

image text in transcribed
The Lakeshore Hotel's occupancy-days and custodial supplies expense over the last seven months were as follows: Custodial Occupancy- Supplies Month Days Expense March 18,250 $ 14,430 April 12,700 15, 150 May 15,300 19,420 June 29,250 23,950 July 25,500 27,450 August 17,800 20,710 September 15,000 19,450 Occupancy-days are a measure of the overall activity at the hotel. For example, when a guest stays at the hotel for three days, it is counted as three occupancy-days. Required: 1. Using the high-low method, estimate a cost formula for custodial supplies expense. (Round the "Fixed cost" to the nearest dollar amount and "Variable cost" to 2 decimal places.) 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 14,000 occupancy-days? (In your computations, round "Variable cost per unit" to 2 decimal places and final answers to the nearest dollar amount.) Amount Variable cost Fixed cost Total cost

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

Step: 3

blur-text-image

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 General Journal

Authors: Claudia Gilbertson

11th Edition

1337623121, 9781337623124

More Books

Students also viewed these Accounting questions

Question

1. What will happen in the future

Answered: 1 week ago

Question

3. Avoid making mistakes when reaching our goals

Answered: 1 week ago