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please answer all the question. only then i will upvote James Smith the CFO of the Hamilton Hotel began his analysis of the electrical costs
please answer all the question. only then i will upvote
James Smith the CFO of the Hamilton Hotel began his analysis of the electrical costs by collecting costs and activity data for a number of months. He is trying to determine the fixed and variable make up of this mixed cost. Electrical costs $ The data is outlined as follows: Month Activity Level/Occupancy days J 2,600 F 2,850 M 3,530 1,440 M 540 3 1,120 6,260 6,550 8,000 4,000 2,300 3,600 3,160 3,610 1,260 7,300 8,100 3,700 1.773 3,320 5,200 190 N 1,080 2,050 D 1). Using the high-low method to determine the fixed and variable components of the electrical costs 2). Express the fixed and variable components for electrical costs as a cost formula in the form Y = a +bx or total costs = fixed costs + variable costs Hi-Lo formula Variable Cost/unit = (High activity cost - Low activity cost) / (High activity level - Low activity level) Define: a). Prime costs, b). Conversion costs, c). Cost Driver Step by Step Solution
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