EXERCISE 5-8 (20 MINUTES)

1. - SOLUTIONS TO QUESTION MANAGERIAL ACCOUNTING CH05 COST BEHAIVIOR ANALYSSIS AND USE
SOLUTIONS TO QUESTION MANAGERIAL ACCOUNTING CH05 COST BEHAIVIOR ANALYSSIS AND USE
1.

Custodial

Guest-

Supplies

Days

Expense

High activity level (July)... 12,000 $13,500 Low activity level (March) ... 4,000 7,500 Change ... 8,000 $ 6,000 Variable cost element: Change in expense= $6,000 =$0.75 per guest-dayChange in activity 8,000 guest-days Fixed cost element: Custodial supplies expense at high activity level... $13,500 Less variable cost element: