User Account

All Pages

How estimate the fixed cost of electricity per month

Assignment Help Accounting Basics
Reference no: EM132619137

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.

 Month           Occupancy-Days                 Electrical Costs

January               1,736                              P4,127

February                1,904                              4,207

March                      2,356                            5,083

April                         960                             2,857

May                          360                              1,871

June                         744                              2,696

July                          2,108                            4,670

August                     2,406                            5,148

September                840                             2,691

October                  124                             1,588

November                720                             2,454

December                 1,364                        3,529

Required:

Problem 1. Using the high-low method, estimate the fixed cost of electricity per month and the variable cost of electricity per occupancy-day. Round off the fixed cost to the nearest whole dollar and the variable cost to the nearest whole cent.

Problem 2. What other factors other than occupancy-days are likely to affect the variation in electrical costs from month to month?

Reference no: EM132619137

Questions Cloud

Which statement relating to ordinary shareholder are correct : Which statements relating to ordinary shareholders are correct? Ordinary shareholders are the last to receive a distribution if the company is wound up.
Outlining the tax effects of the various methods : The partners can transfer their partnership interests to the corporation. Write memo outlining the tax effects of the various methods of forming the corporation
Do we possess morality because it is part of create universe : Utilize feminist ethics to examine ONE of the applied ethics topics in the course. To do this, briefly describe the core principles of feminist ethics by using
Give the entry to record the payment : $5,100 for salaries and wages of which $2,000 was reported as Salaries and Wages Payable on December 31. Give the entry to record the payment.
How estimate the fixed cost of electricity per month : The Cheyenne Hotel in Big Sky, Montana, estimate the fixed cost of electricity per month and the variable cost of electricity per occupancy-day.
How the principles of the theory support a certain position : Demonstrate how the principles of the theory support a certain position on that question. Articulate a relevant objection to the theory on the basis.
What are the accountant responsibilities in performing : Beyond inquiries and analytical procedures, what are the accountant's responsibilities in performing review service engagements?
Describe the three types of misstatements : What factors should the auditor consider in determining whether uncorrected misstatements are material, either individually or in the aggregate?
What other factors might influence a purchase : What are the steps a buyer passes through when making a buying decision? What other factors might influence a purchase? Think about something you recently.

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Theory of interest - term structure of interest rates

Term Structure of Interest Rates

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd