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The Lakeshore Hotel's guest-days of occupancy and custodial supplies expense over the last seven months were: Custodial Supplies of Occupancy Expense Guest-Days Month March April
The Lakeshore Hotel's guest-days of occupancy and custodial supplies expense over the last seven months were: Custodial Supplies of Occupancy Expense Guest-Days Month March April May June July August September 6,000 10,400 5,500 10,200 8,000 $11,200 9,500 $ 11,800 11,500 $12,600 10,500 $12,200 8,000 11,200 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.) Custodial Guest-Days Supplies Expense High activity level Low activity level Change per guest-day Variable cost per guest-day 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 11,100 guest-days? (Do not round your intermediate calculations.)
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