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Online Homework System Assignment Worksheet 9/21/09 - 3:22 PM Name: ____________________________ Class: 116B Managerial Accounting OLFA09 - Seymour Class #: ____________________________ Section #: ____________________________ Instructor: Walt Seymour Assignment: Chapter 5 Homework due 9/27 Question 1: (2 points) Exercise 5-3 High-Low Method [LO3] The Edelweiss Hotel in Vail, Colorado, 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 2,610 $ 6,254 February 2,865 $ 6,566 March 3,520 $ 7,101 April 1,432 $ 4,024 May 520 $ 2,277 June 1,115 $ 3,598 July 3,164 $ 7,261 August 3,719 $ 8,088 September 1,291 $ 3,700 October 319 $ 1,730 November 1,082 $ 3,321 December 2,033 $ 5,199 Requirement 1: Using the high-low method, estimate the variable cost of electricity per occupancy-day and the fixed cost of electricity per month. (Round the fixed cost to the nearest whole dollar and the variable cost to the nearest whole cent. Omit the "$" sign in your response.) Variable cost $ ____________ per occupancy day Fixed cost $ ____________ per month Requirement 2: Which of the following statement(s) is true? (Select all that apply.) (a) Less systematic factors such as frugality of individual guests may also affect electrical costs (b) Electrical cost may reflect seasonal factors other than just the variation in occupancy days (c) Fixed cost will not be affected by the number of days in a month omework Manager - 116B Managerial Accounting OLFA09 - Seymour of 9 9/21/2009 12:32 PM
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Question 2: (2 points) Exercise 5-4 Contribution Format Income Statement [LO4] Haaki Shop, Inc., is a large retailer of water sports equipment. An income statement for the company's surfboard department for a recent quarter is presented below: The Haaki Shop, Inc. Income Statement—Surfboard Department For the Quarter Ended May 31 Sales $ 829,730 Cost of goods sold 296,780 Gross margin 532,950 Selling and administrative expenses: Selling expenses $ 250,000 Administrative expenses. 166,000 416,000 Net operating income $116 ,950 The surfboards sell, on the average, for $397 each. The department's variable selling expenses are $55 per surfboard sold. The remaining selling expenses are fixed. The administrative expenses are 30% variable and 70% fixed. The company purchases its surfboards from a supplier at a cost of $142 per surfboard. Requirement 1: Prepare an income statement for the quarter using the contribution approach. (Omit the "$" sign in your response.) The Haaki Shop, Inc Income Statement—Surfboard Department For the Quarter Ended May 31 __________ $ ____________ Variable expenses: __________ $ ____________ __________ ____________ __________ ____________ ____________ __________ ____________
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