Knowledge check 01 denny corporation sales $ 9,000 direct costs: direct materials $ 1,800 direct labor $ 1,350 activity cost pools total cost machine-setups $ 20,000 special processing 150,000 general factory 200,000 total overhead costs $ 370,000 overhead cost for denny corporation activity cost pool (a) activity rate (b) activity (a) × (b) abc cost machine-setups $ 100 setups 20 setups $ 2,000 special processing $ 15 per machine-hour 50 mhs 750 general factory $ 10 per direct labor-hour 400 direct labor-hours 4,000 total overhead cost assigned to customer $ 6,750 what is the customer margin for denny corporation? what conclusion can you draw from this information? $(900), further analysis is required. $5,850, this is a highly profitable customer. $1,850, this is a marginally profitable customer. $(3,900), the customer should be dropped immediately.

He 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. month occupancy- days electrical 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. (do not round your intermediate calculations. round your variable cost answer to 2 decimal places and fixed cost element answer to nearest whole dollar amount) 2. what other factors other than occupancy-days are likely to affect the variation in electrical costs from month to month? (you may select more than one answer. single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer.) seasonal factors like winter or summer. systematic factors like guests, switching off fans and lights. number of days present in a month. fixed salary paid to hotel receptionist. income taxes paid on hotel income.