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please help with both parts In Part A of this problem, you are asked to do account analysis based on cost and activity information that
please help with both parts
In Part A of this problem, you are asked to do account analysis based on cost and activity information that you are given for one particular month 06-4a830770cb58303064316437643010360aadect677c7a44563332 69 In Part 5, you are asked to do the high-low method based on cost and activity information that you are given for two particular months. NOTE that the data that you must use to get the cost function parameters for Part A are completely different than the data you must use for Part B. However, for both parts, after you the parameters of the cost function, you must make predictions for the same menth Each part of the problem is worth five points and has two questions. There is no partial credit within a part, so to get the five points for a part, you must answer both questions correctly. You get alx tries per part (not per individual question). Lorenzo operates a brushless car wash. Incoming cars are put on an automatic, continuously moving conveyor belt. A car is washed as the conveyor bet cames it from the start station to the finish stat After the car moves off the conveyor belt, workers dry it and clean and vacuum the inside. Workers are managed by a single supervisor Lorenzo's accountant wants to estimate costs in December, when 9,850 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 costs in June, when 11.200 cars were washed. Her analysis revealed the folosing total costs and total variable costs each cost item: Cost Item Variable Cost Total Cost $2,240 $2,240 Soap, deths, and supplies water $5,000 $5,400 Car wash labor $33,540 $31,360 $15,320 $12,320 Power for conveyor Supervisor and cashier $3,500 50 To estimate the cost function parameters using high-low, she used the following tatal cost and activity data from July and August ALAM 07768430366434643743010367774441 a Carwash $33,340 Power for conveyor 0130 $12.320 40 $15.320 $1,500 Supervisor and cashier to estimate the cest functian peramatars using high-low, she used the following total cost and activity cate from July and Augal July August Cost Item Sead, cluths, and supplies $2,700 $3,300 Water $3,000 14,400 $28,200 134,000 Power for conveyor $11,400 $13,400 Supervisor and cashier $5,000 $5,000 Total $50,000 160,100 Cars washed 9,000 11,000 REQUIRED ROUND PER-UNIT COSTS TO TWO DECIMAL PLACES AND TOTAL COSTS TO THE NEAREST DOLLAR Part A (o tries, 5 points) Using account analysis, what is the accountants estimate of total fixed costs for December? 2. Using account analysis, what is the accountants estimate of total variatre costs for December? Saten Arm Tries/6 Part B (6 tries; 5 points) Using the high-low method, what is the accountant's estimate of total fixed costs for December? using the nigh-low method, what is the accountants estimate of variable costs per unit for December Sub Antwer Tries 0/6 Widas In Part A of this problem, you are asked to do account analysis based on cost and activity information that you are given for one particular month 06-4a830770cb58303064316437643010360aadect677c7a44563332 69 In Part 5, you are asked to do the high-low method based on cost and activity information that you are given for two particular months. NOTE that the data that you must use to get the cost function parameters for Part A are completely different than the data you must use for Part B. However, for both parts, after you the parameters of the cost function, you must make predictions for the same menth Each part of the problem is worth five points and has two questions. There is no partial credit within a part, so to get the five points for a part, you must answer both questions correctly. You get alx tries per part (not per individual question). Lorenzo operates a brushless car wash. Incoming cars are put on an automatic, continuously moving conveyor belt. A car is washed as the conveyor bet cames it from the start station to the finish stat After the car moves off the conveyor belt, workers dry it and clean and vacuum the inside. Workers are managed by a single supervisor Lorenzo's accountant wants to estimate costs in December, when 9,850 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 costs in June, when 11.200 cars were washed. Her analysis revealed the folosing total costs and total variable costs each cost item: Cost Item Variable Cost Total Cost $2,240 $2,240 Soap, deths, and supplies water $5,000 $5,400 Car wash labor $33,540 $31,360 $15,320 $12,320 Power for conveyor Supervisor and cashier $3,500 50 To estimate the cost function parameters using high-low, she used the following tatal cost and activity data from July and August ALAM 07768430366434643743010367774441 a Carwash $33,340 Power for conveyor 0130 $12.320 40 $15.320 $1,500 Supervisor and cashier to estimate the cest functian peramatars using high-low, she used the following total cost and activity cate from July and Augal July August Cost Item Sead, cluths, and supplies $2,700 $3,300 Water $3,000 14,400 $28,200 134,000 Power for conveyor $11,400 $13,400 Supervisor and cashier $5,000 $5,000 Total $50,000 160,100 Cars washed 9,000 11,000 REQUIRED ROUND PER-UNIT COSTS TO TWO DECIMAL PLACES AND TOTAL COSTS TO THE NEAREST DOLLAR Part A (o tries, 5 points) Using account analysis, what is the accountants estimate of total fixed costs for December? 2. Using account analysis, what is the accountants estimate of total variatre costs for December? Saten Arm Tries/6 Part B (6 tries; 5 points) Using the high-low method, what is the accountant's estimate of total fixed costs for December? using the nigh-low method, what is the accountants estimate of variable costs per unit for December Sub Antwer Tries 0/6 Widas Step by Step Solution
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