The ABD Hotel's guest-days of occupancy and custodial supplies expense over the last seven months were: Custodial Guest Days Supplies Expense 375,000 Month Оссирancy 4,000 March April May June July August September 6,500 412,500 8,000 525,000 10,500 600,000 12,000 675,000 9,000 537,500 7,500 487,500 Guest-days is a measure of the overall activity at the hotel. For example, a guest who stays at the hotel for three days is counted as three guest-days. Required: 1 Using the high-low method, estimate a cost formula for custodial supplies expense. 2 Using the cost formula you derived above, what amount of custodial supplies would you expect to be incurred at an occupancy level of 11,000 guest-days?

The ABD Hotel's guest-days of occupancy and custodial supplies expense over the last seven months were: Custodial Guest Days Supplies Expense 375,000 Month Оссирancy 4,000 March April May June July August September 6,500 412,500 8,000 525,000 10,500 600,000 12,000 675,000 9,000 537,500 7,500 487,500 Guest-days is a measure of the overall activity at the hotel. For example, a guest who stays at the hotel for three days is counted as three guest-days. Required: 1 Using the high-low method, estimate a cost formula for custodial supplies expense. 2 Using the cost formula you derived above, what amount of custodial supplies would you expect to be incurred at an occupancy level of 11,000 guest-days?

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter7: Budgeting

Section: Chapter Questions

Problem 12EB: Drainee purchases direct materials each month. Its payment history shows that 65% is paid in the...

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The Lakeshore Hotel’s guest-days of occupancy and custodial supplies expense over the last sevenmonths were:Guest-Days of Custodial SuppliesMonth Occupancy ExpenseMarch ............................ 4,000 $7,500April ............................... 6,500 $8,250May ............................... 8,000 $10,500June .............................. 10,500 $12,000July ................................ 12,000 $13,500August ........................... 9,000 $10,750September .................... 7,500 $9,750Guest-days is a measure of the overall activity at the hotel. For example, a guest who stays at the hotelfor three days is counted as three guest-days.Required:1. Using the high-low method, estimate a cost formula for custodial supplies expense.2. Using the cost formula you derived above, what amount of custodial supplies expense would youexpect to be incurred at an occupancy level of 11,000 guest-days?
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G Curtis Party Rentals offers party equipment such as tents, tables, chairs, and so on for outdoor events. The rental fees average $870 per event. Curtis receives a 15 percent deposit two months before the event, 60 percent the month before, and the remainder on the day the equipment is delivered and set up. Planners at Curtis estimate the following number of events for the last half of the current year: July August September October November December 260 280 330 240 200 230 Required: a. What are the expected revenues for Curtis Party Rentals for each month, July through December? Revenues are recorded in the month of the event. b. What are the expected cash receipts for each month, July through October? Complete this question by entering your answers in the tabs below.
Drainee purchases direct materials each month. Its payment history shows that 65% is paid in the month of purchase with the remaining balance paid the month after purchase. Prepare a cash payment schedule for January using this data: in December through February, it purchased $22,000, $25,000, and $23,000 respectively.
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Mendez Hospital showed the following major hospital costs at various levels of activity for CY 2020: Month Hospital Admission Major Hospital Cost(P) February 1,300 P850,000.00 March 8,500 P1,350,000.00 April 1,600 P1,150,000.00 May 1,400 P950,000.00 June 1,200 P800,000.00 July 200 P50,000.00 August 1,650 P1,200,000.00 September 1,550 P1,050,000.00 The breakdown of the major hospital costs in the month of May at 1,400 hospital admission is as follows: Accommodation Expense (Variable) P400,000.00 Utilities (Fixed) P300,000.00 Medicine (Mixed) P250,000.00 Total Overhead Cost P950,000.00 Requirements: Determine how much of major hospital cost for the month of August of P1,200,000.00 consisted of medicine cost Using high-low method, determine the cost function for Medicine Using high-low method, determine the cost function for major hospital cost What would be the…