Snicks board shop is trying to understand the behavior of their utility expenses. They have accumulated utility expenses over the last 9 months and believe hours open per month are a good predictor of expense behavior. Utility expenses include electricity, gas, and water. Use the file ch7-11 to completea cost prediction worksheet.

1. Using the Hi-Lo method, calculate variable cost per unit sold, fixed costs, and a prediction of utility expense when they are open 230 hours in a month.
2. Using the Least Squares/Regression method, calculate variable cost per unit sold, fixed costs, and a prediction of utility expense when they are open 230 hours in a month.
3. Display a chart of selling expense/units sold with a trend line. (Be sure to modify each axis so your scatter diagram is better displayed, as you did earlier in this chapter.

Question is from Chapter 7 in the Using Microsoft Excell & Access for Accounting 2016 by Glenn Owen

Snick's Board Shop Ch 07-11 Predicting Costs Month Jan Feb Mar Apr May Jun Jul Aug Sep High Expense Low Expense Difference Hi-Lo Method Variable cost/unit sold Fixed cost Prediction of utility expense when open 230 hours = Least Squares / Regression Method Variable cost/unit sold Fixed cost Prediction of utility expense when open 230 hours = Hours Open 200 190 185 140 165 175 220 225 290 $ $ $ $ $ $ $ $ $ Utility Expense 3,000 3,100 2,700 2,600 2,850 2,800 3,350 3,400 5,000