The Lakeshore Hotel's occupancy-days and custodial supplies expense over the last seven months were as follows:

Occupancy-Days Expense

March9,600$15,480

April9,80015,640

May12,70018,260

June20,50024,200

July28,20030,360

August19,60022,130

September15,90019,870

Occupancy-days are a measure of the overall activity at the hotel. For example, when a guest stays at the hotel for three days, it is counted as three occupancy-days.

Required:1.Using the high-low method, estimate a cost formula for custodial supplies expense.(Round the "Variable cost" to 2 decimal places.)

Y= + X

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 14,800 occupancy-days?

variable cost:

fixed cost:

total cost: