A1 Required informationGator Beach Marts, a chain of convenience grocery stores in the Fort Lauderdale area, has store hours that fluctuate frommonth to month as the tourist trade in the community varies. The utility costs for one of the company's stores are listedbelow for the past six months.MonthJanuaryFebruaryMarchAprilMayJuneTotal Hours of Total UtilityOperation500600700450400350Cost$2,8203,2003,6002,7002,3502,200Required:1-a. Use the high-low method to estimate the cost behavior for the store's utility costs. Express the cost behavior in formula form (Y=a+ bx).1-b. What is the variable utility cost per hour of operation?3-a. Construct an Excel spreadsheet and use the Excel commands to perform a least-squares regression. Estimate the cost behaviorfor the store's utility cost. Express the cost behavior in formula form.3-b. What is the variable utility cost per hour of operation?4. During July, the store will be open 300 hours. Predict the store's total utility cost for July using each of the cost-estimation methodsemployed in requirements (1) and (3).Complete this question by entering your answers in the tabs below.

The high-low method is used to differentiate the mixed costs. Mixed cost is the combination of fixed…

Gator Beach Marts, a chain of convenience grocery stores in the Fort Lauderdale area, has store hours that fluctuate from month to month as the tourist trade in the community varies. The utility costs for one of the company's stores are listed below for the past six months. Month January February March April May June Total Hours of Operation 500 600 700 450 400 350 Total Utility Cost $ 2,820 3,200 3,600 2,700 2,350 2,200 Required: 1-a. Use the high-low method to estimate the cost behavior for the store's utility costs. Express the cost behavior in formula form (Y = a + bx).

Gator Beach Marts, a chain of convenience grocery stores in the Fort Lauderdale area, has store hours that fluctuate from month to month as the tourist trade in the community varies. The utility costs for one of the company's stores are listed below for the past six months. Month January February March April May June Total Hours of Operation 500 600 700 450 400 350 Total Utility Cost $ 2,820 3,200 3,600 2,700 2,350 2,200 Required: 1-a. Use the high-low method to estimate the cost behavior for the store's utility costs. Express the cost behavior in formula form (Y = a + bx).

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter7: Allocating Costs Of Support Departments And Joint Products

Section: Chapter Questions

Problem 1CE: The expected costs for the Maintenance Department of Stazler, Inc., for the coming year include:...

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