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The Lakeshore Hotel's guest-days of occupancy and custodial supplies expense over the last seven months were: Days Custodial Supplies of March Apnil May June July
The Lakeshore Hotel's guest-days of occupancy and custodial supplies expense over the last seven months were: Days Custodial Supplies of March Apnil May June July August 12,500 $16,400 September 10,000 $14.400 8,000 $12,800 7,500 $12.400 10,000 $14.400 11,500 $15,600 13,500 $17,200 Guest-days is a measure of the overall activity at the hotel. For example, a guest who stays at the hotel for three days is counted as three guest-days. Required: 1. Using the high-low method, estimate a cost formula for custodial supplies expense. (Round the Variable cost per guest-day to 2 decimal points.) Guest- Days Supplies High activity level Low activity level Variable cost per per guest- uest-da Fixed cost per month 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 12,900 guest-days? (Do not round your intermediate calculations.) Variable cost Fixed cost Total cost
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