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Required information EX 6-34 (Algo) Estimating Cost Behavior by Multiple Methods (Appendix) (LO 6-1, 6-2, 6-5, 6-9) Gator Beach Marts, a chain of convenience grocery stores in the Fort Lauderdale area, has store hours that fluctuate from month to month as the tourist trade in the community varies. The utility costs for one of the company's stores are listed below for the past six months. Month January February March April May June Total Hours of Total Utility Operation 450 600 800 400 350 300 Cost $2,520 3,100 3,900 2,400 2,050 1,900 EX 6-34 (Algo) Part 1: The utility costs for one of the company's stores are listed below... Required: 1-a. Use the high-low method to estimate the cost behavior for the store's utility costs. Express the cost behavior in formula form (Y = a + bx). 1-b. What is the variable utility cost per hour of operation?

Required information EX 6-34 (Algo) Estimating Cost Behavior by Multiple Methods (Appendix) (LO 6-1, 6-2, 6-5, 6-9) Gator Beach Marts, a chain of convenience grocery stores in the Fort Lauderdale area, has store hours that fluctuate from month to month as the tourist trade in the community varies. The utility costs for one of the company's stores are listed below for the past six months. Month January February March April May June Total Hours of Total Utility Operation 450 600 800 400 350 300 Cost $2,520 3,100 3,900 2,400 2,050 1,900 EX 6-34 (Algo) Part 1: The utility costs for one of the company's stores are listed below... Required: 1-a. Use the high-low method to estimate the cost behavior for the store's utility costs. Express the cost behavior in formula form (Y = a + bx). 1-b. What is the variable utility cost per hour of operation?

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Required information EX 6-34 (Algo) Estimating Cost Behavior by Multiple Methods (Appendix) (LO 6-1, 6-2, 6-5, 6-9) Gator Beach Marts, a chain of convenience grocery stores in the Fort Lauderdale area, has store hours that fluctuate from month to month as the tourist trade in the community varies. The utility costs for one of the company's stores are listed below for the past six months. Month January February March April May June Total Hours of Total Utility Operation 450 600 800 400 350 300 EX 6-34 (Algo) Part 1: The utility costs for one of the company's stores are listed below... Required: 1-a. Use the high-low method to estimate the cost behavior for the store's utility costs. Express the cost behavior in formula form (Y=a + bx). 1-b. What is the variable utility cost per hour of operation? 3-a. Construct an Excel spreadsheet and use the Excel commands to perform a least-squares regression. Estimate the cost behavior for the store's utility cost. Express the cost behavior in formula form. 3-b. What is the variable utility cost per hour of operation? 4. During July, the store will be open 300 hours. Predict the store's total utility cost for July using each of the cost-estimation methods employed in requirements (1) and (3). Req 1A Cost $ 2,520 3,100 3,900 2,400 2,050 1,900 Complete this question by entering your answers in the tabs below. Req 1B Req 3A Req 3B Req 4 Construct an Excel spreadsheet and use the Excel commands to perform a least-squares regression. Estimate the cost behavior for the store's utility cost. Express the cost behavior in formula form. Note: Round the intercept to the nearest whole number and the slope to two decimal places. Monthly utility cost = X
Transcribed Image Text:Required information EX 6-34 (Algo) Estimating Cost Behavior by Multiple Methods (Appendix) (LO 6-1, 6-2, 6-5, 6-9) Gator Beach Marts, a chain of convenience grocery stores in the Fort Lauderdale area, has store hours that fluctuate from month to month as the tourist trade in the community varies. The utility costs for one of the company's stores are listed below for the past six months. Month January February March April May June Total Hours of Total Utility Operation 450 600 800 400 350 300 EX 6-34 (Algo) Part 1: The utility costs for one of the company's stores are listed below... Required: 1-a. Use the high-low method to estimate the cost behavior for the store's utility costs. Express the cost behavior in formula form (Y=a + bx). 1-b. What is the variable utility cost per hour of operation? 3-a. Construct an Excel spreadsheet and use the Excel commands to perform a least-squares regression. Estimate the cost behavior for the store's utility cost. Express the cost behavior in formula form. 3-b. What is the variable utility cost per hour of operation? 4. During July, the store will be open 300 hours. Predict the store's total utility cost for July using each of the cost-estimation methods employed in requirements (1) and (3). Req 1A Cost $ 2,520 3,100 3,900 2,400 2,050 1,900 Complete this question by entering your answers in the tabs below. Req 1B Req 3A Req 3B Req 4 Construct an Excel spreadsheet and use the Excel commands to perform a least-squares regression. Estimate the cost behavior for the store's utility cost. Express the cost behavior in formula form. Note: Round the intercept to the nearest whole number and the slope to two decimal places. Monthly utility cost = X
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