The Lakeshore Hotel’s guest-days of occupancy and custodial supplies expense over the last seven months were: Month Guest-Days of Occupancy Custodial Supplies Expense March 7,000 $ 10,200 April 6,500 $ 10,100 May 9,000 $ 10,600 June 10,500 $ 10,900 July 12,500 $ 11,300 August 11,500 $ 11,100 September 9,000 $ 10,600 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. (Round the Variable cost per guest-day to 2 decimal points.) 2. Using the cost formula you derived above, what amount of custodial supplies expense would you expect to be incurred at an occupancy level of 11,300 guest-days? (Do not round your intermediate calculations.)

The Lakeshore Hotel’s guest-days of occupancy and custodial supplies expense over the last seven months were: Month Guest-Days of Occupancy Custodial Supplies Expense March 7,000 $ 10,200 April 6,500 $ 10,100 May 9,000 $ 10,600 June 10,500 $ 10,900 July 12,500 $ 11,300 August 11,500 $ 11,100 September 9,000 $ 10,600 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. (Round the Variable cost per guest-day to 2 decimal points.) 2. Using the cost formula you derived above, what amount of custodial supplies expense would you expect to be incurred at an occupancy level of 11,300 guest-days? (Do not round your intermediate calculations.)

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter12: Current Liabilities

Section: Chapter Questions

Problem 18MC: Employees at Rayon Enterprises earn one day a month of vacation compensation (twelve days total each...

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The Lakeshore Hotel guest days of occupancy and custodial supplies expense over the last seven months were: Month Guest Days of Occupancy Custodial Supplies Expense March 4,000 $7,500 April 6,500 $8,250 May 8,000 $10,500 June…
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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Month	Guest-Days of Occupancy		Custodial Supplies Expense
March	7,000	$	10,200
April	6,500	$	10,100
May	9,000	$	10,600
June	10,500	$	10,900
July	12,500	$	11,300
August	11,500	$	11,100
September	9,000	$	10,600

Required:
1.	Using the high-low method, estimate a cost formula for custodial supplies expense. (Round the Variable cost per guest-day to 2 decimal points.)