Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The Laura's BNB occupancy-days and custodial supplies expense over the last seven months were as follows: Month March April May June July August September Occupancy

image text in transcribedimage text in transcribed

The Laura's BNB occupancy-days and custodial supplies expense over the last seven months were as follows: Month March April May June July August September Occupancy - Days 18,550 12,940 15,660 30,150 27,300 19, eee 15,600 Custodial Supplies Expense $ 14,680 14,760 16,700 19,400 22,120 17,450 16,790 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 counted as three occupancy-days. Required: 1. Using the high-low method, estimate a cost formula for custodial supplies expense. (Round the "Fixed cost" to the nearest dollar amount and "Variable cost" to 2 decimal places.) Y = 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 14,200 occupancy-days? (In your computations, round "Variable cost per unit" to 2 decimal places and final answers to the nearest dollar amount.) Amount Variable cost Fixed cost Total cost

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

McGraw Hills Essentials Of Federal Taxation 2020 Edition

Authors: Brian Spilker, Benjamin Ayers, John Robinson, Edmund Outslay, Ronald Worsham, John Barrick, Connie Weaver

11th Edition

1260433129, 9781260433128

Students also viewed these Accounting questions