The management of Charlene Mountain Hotel is interested in the analysisof the fixed and variable costs in the electricity used in its relationship to hoteloccupancy. The data shown below have been gathered from the books andrecords in its first six months of 2020:Guestdays1,000Costs2020 JanuaryFebruaryMarchAprilMayP4,0001,5005,0002,5003,0002,5004,5005,0007,0006,000June8,000REQUIRED:1. Split the cost of electricity into its fixed and variable components, using thescattergraph method. Compute the variable rate up to 5 decimals; roundtotals upward to nearest peso.2. If the hotel expects in the next quarter about only 5,000 guestdays, how muchcost of electricity is expected to be incurred for this period?

To compute the fixed and variable component using the scattergraph method, first, we need to create…

mahagement of Charlene Mountain Hotel is interested in the analysis of the fixed and variable costs in the electricity used in its relationship to hotel occupancy. The data shown below have been gathered from the books and records in its first six months of 2020: Guestdays 2020 January February Costs P4,000 1,000 1,500 5,000 March 2,500 5,000 April May 3,000 2,500 7,000 6,000 June 4,500 8,000 REQUIRED: 1. Split the cost of electricity into its fixed and variable components, using the scattergraph method. Compute the variable rate up to 5 decimals; round totals upward to nearest peso. 2. If the hotel expects in the next quarter about only 5,000 guestdays, how much cost of electricity is expected to be incurred for this period?

mahagement of Charlene Mountain Hotel is interested in the analysis of the fixed and variable costs in the electricity used in its relationship to hotel occupancy. The data shown below have been gathered from the books and records in its first six months of 2020: Guestdays 2020 January February Costs P4,000 1,000 1,500 5,000 March 2,500 5,000 April May 3,000 2,500 7,000 6,000 June 4,500 8,000 REQUIRED: 1. Split the cost of electricity into its fixed and variable components, using the scattergraph method. Compute the variable rate up to 5 decimals; round totals upward to nearest peso. 2. If the hotel expects in the next quarter about only 5,000 guestdays, how much cost of electricity is expected to be incurred for this period?

Excel Applications for Accounting Principles

4th Edition

ISBN:9781111581565

Author:Gaylord N. Smith

Publisher:Gaylord N. Smith

Chapter28: Statistics And Linear Regression (stats)

Section: Chapter Questions

Problem 1R

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