$9345 is incorrect. The Lakeshore Hotel's occupancy-days and custodial supplies expense over the last seven monthswere as follows:CustodialSuppliesExpense$ 14,43014,18019,42023,95027,45020,71019,450Occupancy-Days6,900MonthMarchAprilMay7,90013,60020,50025,50017,80015,000JuneJulyAugustSeptemberOccupancy-days are a measure of the overall activity at the hotel. For example, when a guest stays atthe hotel for three days, it is counted as three occupancy-days.Required:1. Using least-squares regression (you may use a spreadsheet to compute the fixed and variable costs),estimate a cost formula for custodial supplies expense. (Round the "Fixed cost" to the nearest dollaramount and "Variable cost" to 2 decimal places.)Y =9,345 +$0.71 X2. Using the cost formula you derived above, what amount of custodial supplies expense would youexpect to be incurred at an occupancy level of 12,000 occupancy-days? (Round the "Fixed cost" to thenearest dollar amount.)Variable costFixed costTotal cost8,520$8,520

Least squares regression is the method of determining about how much is the variable cost per unit…

1. Using least-squares regression (you may use a spreadsheet to compute the fixed and variable costs), 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 = 9,345 + $ 0.71 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 12,000 occupancy-days? (Round the "Fixed cost" to the nearest dollar amount.)

1. Using least-squares regression (you may use a spreadsheet to compute the fixed and variable costs), 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 = 9,345 + $ 0.71 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 12,000 occupancy-days? (Round the "Fixed cost" to the nearest dollar amount.)

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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