Using the high-low method estimate the fixed cost of

Assignment Help Accounting Basics
Reference no: EM13390712

The Edelweiss Hotel in Vail, Colorado, 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 hotels business is highly seasonal, with peaks occurring during the ski season and in the summer.

Month                              Occupancy Days                  Electrical Cost

 

Jan                                   2604                                    $6257

Feb                                   2856                                    $6550

March                               3534                                    $7986

April                                 1440                                     $4022

May                                   540                                     $2289

June                                1116                                      $3591

July                                  3162                                      $7264

August                              3608                                      $8111

September                         1260                                    $3707

October                             186                                      $1712

November                         1080                                      $3321

December                        2046                                       $5196

Required:

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.

Reference no: EM13390712

Questions Cloud

What are the various levels of market : what are the different levels of market segmentation? synthesize the segmentation strategies that manufacturers of
Illustrate the optimal factor mix the cally will use in : cally uses labour l and capital k in her production process. the wage rate for one unit of labour is 10 while units of
Discuss the importance of effective supervision while : burn out is a challenge for many in this field.nbsp answer the following questions1.what is burn out? 2.what are the
List the four main psychological processes as discussed in : the typical buying process consists of the following sequence of events problem recognition information search
Using the high-low method estimate the fixed cost of : the edelweiss hotel in vail colorado has accumulated records of the total electrical costs of the hotel and the number
Explain the purpose of freight classification explain the : explain the purpose of freight classification? explain the differences between the rate and a rating. how do they
With a minimum of 200 words what is your understanding of : marketing has often been defined in terms of satisfying customers needs and wants. critics however maintain that
Why does the united states have so many laws acts and : the purpose of the discussion board is to allow students to learn through sharing ideas and experiences as they relate
Calculate the issue price of the bonds without prejudice to : present value of 1 for 10 periods at 10 .386present value of 1 for 10 periods at 12 .322present value of 1 for 20

Reviews

Write a Review

Accounting Basics Questions & Answers

  Estimated losses from uncollectible accounts

An aging analysis of the accounts receivable produces an estimate of $2000 of probable losses from uncollectible accounts. the adjusting entry needed to record the estimated losses from uncollectible accounts is made for?

  Gray stone and lawson open an accounting practice on

gray stone and lawson open an accounting practice on january 1 2011 in san diegocalifornia to be operated as a

  Explain how companies handle uncollectible accounts

Explain how companies handle uncollectible accounts and revenue recognition when the right of return exists.

  Ratios provide the users of financial statements with the

ratios provide the users of financial statements with a great deal of information about the entity. do ratios tell the

  Payback period of the project

The annual net operating income from the project would be $135,000, which includes depreciation of $37,000. The scrap value of the project's assets at the end of the project would be $25,000. The payback period of the project is closest to:

  Depreciation under the straight-line method

Assuming that the compressor has a salvage value of $2,500, calculate its 2008 depreciation under the straight-line method

  Lowest cost of goods sold for the income statement

Determing ending inventory, cost of goods sold under FIFO, LIFO and Average. Which cost flow method results in lowest inventory amount for the balance sheet, and the lowest cost of goods sold for the income statement.

  Identify the relevant tax issues for jack

Many years ago, Jack purchased 400 shares of Canary stock. During the current year, the stock became worthless. It was determined that the company "went under" because several corporate officers embezzled a large amount of company funds. Identify ..

  Reclassification of trading securities as available-for-sale

The reclassification of trading securities as available-for-sale would produce the following effect:

  Statement of cash flows concept

Of the following questions, which would NOT be answered by the statement of cash flows?

  Gross income-constructive receipt of income

Which of the following is not considered actual receipt or "constructive receipt" of income in the current year? Which of the following does not have to be included in gross income?

  Advantages and disadvantages of ideal versus normal standard

The comparative advantages and disadvantages of ideal versus normal standards.

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!

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