### Camp Rainbow Summer Program Cost Analysis**Overview:**Camp Rainbow offers overnight summer camp programs for children aged 10 to 14 throughout June and July. Each camp session lasts one week and can accommodate up to 200 children. The camp alternates between boys' and girls' weeks: boys attend during odd-numbered weeks, and girls attend during even-numbered weeks.**Activities:**During their stay at Camp Rainbow, children engage in activities such as:- Craft-making- Participation in various sports- Caring for the camp’s resident animals- Cookouts and hayrides- Assembling toys for local underprivileged children**Facilities and Staff:**- Each cabin houses up to 10 children.- One camp counselor is assigned per cabin.- Three camp managers are always on-site, regardless of the number of campers.**Cost Information:**Below is a record of the number of campers and the cost to run the camp over various weeks last summer:| Week | Number of Campers | Cost to Run Camp ||------|-------------------|------------------|| 1 | 94 | $8,430 || 2 | 148 | $8,730 || 3 | 120 | $8,610 || 4 | 108 | $8,570 || 5 | 110 | $8,610 || 6 | 128 | $8,810 || 7 | 100 | $8,410 || 8 | 124 | $8,590 |**Requirements:**1. **High-Low Method Calculation:** - Using the high-low method, determine the total fixed operating costs and variable operating cost per child for Camp Rainbow.2. **Expected Operating Cost:** - Calculate the expected operating cost if 90 children attend the camp, based on high-low method results.**High-Low Method Explained:**The high-low method involves taking the highest and lowest activity levels (number of campers) and their associated costs to estimate the fixed and variable costs.**Solution Outline:**1. **Identify the highest and lowest levels of activity:** - Highest: 148 campers at $8,730 - Lowest: 94 campers at $8,4302. **Calculate the variable cost per camper: ### Required Information[The following information applies to the questions displayed below.]Camp Rainbow offers overnight summer camp programs for children ages 10 to 14 every summer during June and July. Each camp session is one week and can accommodate up to 200 children. The camp is not coed, so boys attend during the odd-numbered weeks and girls attend during the even-numbered weeks. While at the camp, participants make crafts, participate in various sports, help care for the camp’s resident animals, have cookouts and hayrides, and help assemble toys for local underprivileged children.The camp provides all food as well as materials for all craft classes and the toys to be assembled. One cabin can accommodate up to 10 children, and one camp counselor is assigned to each cabin. Three camp managers are on-site regardless of the number of campers enrolled.Following is the cost information for Camp Rainbow’s operations last summer:| Week | Number of Campers | Cost to Run Camp ||------|-------------------|------------------|| 1 | 94 | $8,630 || 2 | 140 | $11,740 || 3 | 108 | $9,880 || 4 | 124 | $11,100 || 5 | 118 | $9,810 || 6 | 80 | $8,070 || 7 | 90 | $8,490 || 8 | 124 | $9,590 |### Required4. Using the high-low method, calculate Camp Rainbow’s total fixed operating costs and variable operating cost per child.5. Using the high-low method results, calculate the camp’s expected operating cost if 90 children attend a session.---*Answer is complete but not entirely correct.*Complete this question by entering your answers in the tabs below.### Required 4Using the high-low method, calculate Camp Rainbow’s total fixed operating costs and variable operating cost per child. Note: Round your intermediate calculations and "Variable Cost per unit" to 2 decimal places.- **Fixed Cost:** $61.20- **Variable Cost per Child:** $8.61

Costs estimation is one of the important concept used in cost accounting. As per high low method,…

Required information [The following information applies to the questions displayed below.) Camp Rainbow offers overnight summer camp programs for children ages 10 to 14 every summer during June and July. Each camp session is one week and can accommodate up to 200 children. The camp is not coed, so boys attend during the odd-numbered weeks and girls attend during the even-numbered weeks. While at the camp, participants make crafts, participate in various sports, help care for the camp's resident animals, have cookouts and hayrides, and help assemble toys for local underprivileged children. The camp provides all food as well as materials for all craft classes and the toys to be assembled. One cabin can accommodate up to 10 children, and one camp counselor is assigned to each cabin. Three camp managers are on-site regardless of the number of campers enrolled. Following is the cost information for Camp Rainbow's operations last summer: Number of Cost to Run Camp $8,630 11,740 Week 1 2 3 4 5 6 7 Campers 94 140 108 120 118 100 90 124 8,830 9,400 9,010 8,610. 8,680 9,590 Required: 4. Using the high-low method, calculate Camp Rainbow's total fixed operating costs and variable operating cost per child. 5. Using the high-low method results, calculate the camp's expected operating cost if 90 children attend a session. Complete this question by entering your answers in the tabs below. Required 4 Required 5 Using the high-low method results, calculate the camp's expected operating cost if 90 children attend a session. Note: Round your intermediate calculations and final answer to 2 decimal places. Expected Cost 8,680.00

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q