User Account

All Pages

Estimate the fixed cost of electricity per month

Assignment Help Managerial Accounting
Reference no: EM132558952

The Royal Canadian Lodge in Banff, Alberta, 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                                $4,127

February                          1,407                               3,207

March                                2,536                                 5,383

April                                  960                                 2,857

May                                   630                                  2,871

June                                     744                                2,696

July                                     2,108                                  4,670

August                                  1,406                                3,148

September                               480                                  1,391

October                                     224                                 1,988

November                                  720                                       2,454

December                                   1,364                                     3,529

Required:

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

Question 2: What factors other than occupancy-days are likely to affect the monthly variation in electrical costs?

Reference no: EM132558952

Questions Cloud

Aid of an appropriate labeled diagram : Due to Covid - 19 Pandemic that caused economics crisis, Bank of Canada had cut interest rates; and it is likely to announce
Legal-ethical and global environment : Explain some of the hurdles litigants have encountered when it comes to the Endangered Species Act and standing to bring a lawsuit.
Which are mixed cost functions : Which of the following are linear cost functions? Which are mixed cost functions? Given: Y = total costs, X1 = production volume
What is the eventual total change in deposits : After infinite rounds of depositing and lending, what is the eventual total change in deposits?
Estimate the fixed cost of electricity per month : Using the high-low method, estimate the fixed cost of electricity per month and the variable cost of electricity per occupancy-day.
Calculate the depreciation expense for the third year : Calculate depreciation expense for the third year after acquisition using double-declining-balance depreciation. Assume full year of depreciation in first year
What is the amount of Joans taxable gifts : Gift Joan, a married taxpayer, makes the following gifts during the current year (2018): $25,000 to her church, What is the amount of Joans taxable gifts
What are the complexities of fair trade : What are the complexities of fair trade and how is fair trade beneficial in terms of economics?
Explain importance of information security policies : Explain the importance of information security policies and the role they play in ensuring sound and secure business information.

Reviews

Write a Review

Managerial Accounting Questions & Answers

  Manage budgets and financial plans

Explain the budgeting process and its importance to a business, identifying the components of different budgets, forecast estimates for inclusion in the budgets.

  Prepare a retained earnings statement

Prepare a retained earnings statement for the year and Prepare a stockholders' equity section of given case.

  Prepare a master budget for the three-month period

Prepare a master budget for the three-month period.

  Construct the companys direct labor budget

Construct the company's direct labor budget for the upcoming fiscal year, assuming that the direct labor workforce is adjusted each quarter to match the number of hours required to produce the forecasted number of units produced.

  Evaluate the predetermined overhead rate

Evaluate the Predetermined Overhead Rate

  Determine the company''s bid

Determine the company's bid if activity-based costing is used and the bid is based upon full manufacturing cost plus 30 percent.

  Compute the pool rates for the different activities

Complete the schedule to compute the pool rates for the different activities.

  Prepare Company financial statements

Prepare Company financial statements

  Prepare an analysis of terracycles

This individual assignment is based on the TerraCycle Inc.

  Discuss the ethical issues

Discuss the ethical issues

  Political resources in emerging markets

Calculate the GDP in Income Approach  and Expenditure Approach

  Management accounting - ehsan electronics company

A new plant accountant suggested that the company may be able to assign support costs to products more accurately by using an activity based costing system that relies on a separate rate for each manufacturing activity that causes support costs.

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: +91-977-207-8620

Phone: +91-977-207-8620

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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