Snick’s Board Shop Month Hours Open Utility Expense
Ch 07-11 Solution Jan 200 3,000$
Predicting Costs Feb 190 3,100$
Mar 185 2,700$
Apr 140 2,600$
Hi-Lo Method
Variable cost/unit sold 16.00$
Fixed cost 360.00$
Prediction of utility expense when open 230 hours = 4,040$
Least Squares / Regression Method
Variable cost/unit sold 15.90$
Fixed cost 37.44$
Prediction of utility expense when open 230 hours = 3,695$
$4,500
$5,000
$5,500
U
t
i
Utility Expense/Hours Open
High Expense 290 5,000$
Low Expense 140 2,600$