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QUESTION 11. The Cheyenne Hotel in Big Sky, Montana, has accumulated records of the total electrical costs of the hotel and the number of occupancy-days over the last year. An occupancy-day represents a room rented out for one day. The hote's business is highly seasonal, with peaks occurring during the ski season and in the summer. Occupancy- Days Electrical Month Costs January 2,607 S6.264 February 2,856 S6,547 March 3,600 S8,090 April 1,424 $4,030 May 230 $2.285 June 1,119 $3.594 July 3,155 $7.271 August 3,710 $8,155 September 1,278 $3,708 October 110 $1,723 November 1,086 $3,314 December 2,023 $5,198 Required: Using the high-low method, estimate the fixed cost of electricity per month and the variable cost of clectricity per occupancy-day.

QUESTION 11. The Cheyenne Hotel in Big Sky, Montana, has accumulated records of the total electrical costs of the hotel and the number of occupancy-days over the last year. An occupancy-day represents a room rented out for one day. The hote's business is highly seasonal, with peaks occurring during the ski season and in the summer. Occupancy- Days Electrical Month Costs January 2,607 S6.264 February 2,856 S6,547 March 3,600 S8,090 April 1,424 $4,030 May 230 $2.285 June 1,119 $3.594 July 3,155 $7.271 August 3,710 $8,155 September 1,278 $3,708 October 110 $1,723 November 1,086 $3,314 December 2,023 $5,198 Required: Using the high-low method, estimate the fixed cost of electricity per month and the variable cost of clectricity per occupancy-day.

FINANCIAL ACCOUNTING
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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Please help me do excercise 11
Copule the company's manufacturing overhead rate (including both variable and fixed manufacturing overhead) for the upcoming fiscal year. QUESTION 11. The Cheyenne Hotel in Big Sky. Montana, has accumulated records of the total electrical costs of the hotel and the number of occupancy-days over the last year. An occupancy-day represents a room rented out for one day. The hotel's business is highly seasonal, with peaks occurring during the ski season and in the summer. Occupancy- Days Electrical Costs Month Jamuary 2,607 S6.264 February 2,856 $0,547 March $8,090 April 1,424 $4,030 May 230 $2.285 June 1,119 $3.594 July 3,155 $7.271 August 3,710 $8,155 September 1,278 $3,708 October 110 $1,723 November 1,086 $3,314 December 2,023 $5,198 Required: Using the high-low method, estimate the fixed cost of clectricity per month and the variable cost of clectricity per occupancy-day.
Transcribed Image Text:Copule the company's manufacturing overhead rate (including both variable and fixed manufacturing overhead) for the upcoming fiscal year. QUESTION 11. The Cheyenne Hotel in Big Sky. Montana, has accumulated records of the total electrical costs of the hotel and the number of occupancy-days over the last year. An occupancy-day represents a room rented out for one day. The hotel's business is highly seasonal, with peaks occurring during the ski season and in the summer. Occupancy- Days Electrical Costs Month Jamuary 2,607 S6.264 February 2,856 $0,547 March $8,090 April 1,424 $4,030 May 230 $2.285 June 1,119 $3.594 July 3,155 $7.271 August 3,710 $8,155 September 1,278 $3,708 October 110 $1,723 November 1,086 $3,314 December 2,023 $5,198 Required: Using the high-low method, estimate the fixed cost of clectricity per month and the variable cost of clectricity per occupancy-day.
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