A-6 Required informationEX 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 frommonth to month as the tourist trade in the community varies. The utility costs for one of the company's stores are listedbelow for the past six months.MonthJanuaryFebruaryMarchAprilMayJuneTotal Hours of Total UtilityOperation450600800400350300EX 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 behaviorfor 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 methodsemployed in requirements (1) and (3).Req 1ACost$ 2,5203,1003,9002,4002,0501,900Complete this question by entering your answers in the tabs below.Req 1BReq 3AReq 3BReq 4Construct an Excel spreadsheet and use the Excel commands to perform a least-squares regression. Estimate the costbehavior 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

The high-low method is used to differentiate the mixed costs. Mixed cost is the combination of fixed…

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?

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter2: Building Blocks Of Managerial Accounting

Section: Chapter Questions

Problem 7EA: Western Trucking operates a fleet of delivery trucks. The fixed expenses to operate the fleet are...

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Bourbon House, a luxury waterfront restaurant, has store hours fluctuate from week to week.Its utilities costs and hours of operation for the last six (6) weeks are as follow:Week Hours of Operation Utilities Cost1 55 6 4802 60 6 6003 64 7 4604 70 7 6005 45 5 4006 40 5 200Required:a) Use the high-low method to estimate the cost behaviour for the restaurant’s utilitiescosts, assuming that variable costs vary in proportion to the hours of operation. Expressthe cost behaviour in a cost function (Y = a + bX). b) During the second week of June, Bourbon House will be opened for 49 hours. Predict therestaurant’s total utilities cost for the week. c) Explain the impact of a decrease in the level of activity on (i) total variable cost; and (ii)variable cost per unit of activity. need to answer all questions with workings
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