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Appreciate any assistance from our tutors CoursHeroTranscribedText: HW LO 24 25 b EXERCISE 2-5...

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Accounting

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CoursHeroTranscribedText: HW LO 24 25 b EXERCISE 2-5 High-Low Method [LO 2-5] The Cheyenne Hotel in Big Sky, Montana, 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. Electrical Month Occupancy-Days Costs January . ....... 1,736 $4,127 February .... . .. . .. 1,904 $4,207 March. . . .. 2,356 $5,083 April . . . . . . 960 $2,857 May . 360 $1,871 June. ... 744 $2,696 July. . 2, 108 $4,670 August. .... 2,406 $5,148 September . .. 840 $2,691 October. . . . . . . . 124 $1,588 November. ... . . . . . 720 $2,454 December. .. .. . . . . 1,364 $3,529 Required: 1. 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. 2. What other factors other than occupancy-days are likely to affect the variation in electrical costs from month to month

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