Question

Camp Rainbow offers overnight summer camp programs for children ages 10-14 every summer during June and July. Each camp session is one week and can accommodate up to 200 children. The camp is not coed, so boys attend during the odd-numbered weeks and girls attend during the even-numbered weeks. While at the camp, participants make crafts, participate in various sports, help care for the camp's resident animals, have cookouts and hayrides, and help assemble toys for local underprivileged children. The camp provides all food as well as materials for all craft classes and the toys to be assembled. One cabin can accommodate up to 10 children, and one camp counselor is assigned to each cabin. Three camp managers are on-site regardless of the number of campers enrolled. The results of the least-squares regression of the number of campers and the cost to run camp are given below. Following is the cost information for Camp Rainbow's operations last summer Week 1 2 3 Number of Cost to Run Campers Camp 90 58,050 118 8,460 156 10,900 174 11,100 188 13,670 184 14,300 170 12,325 156 11,270 5 6 7 8 Required: 4. Using the high-low method, calculate Comp Rainbow's total fixed operating costs and variable operating cost per child 5. Using the high-low method results, calculate the camp's expected operating costy 170 children attend a session. Complete this question by entering your answers in the tabs below. Required 4 Required 5 Using the high-low method, calculate Camp Rainbow's total fixed operating costs and variable operating cost per child. (Do not round your intermediate calculations and Round your final answers to 2 decimal places.) Fixed Cost Variable Cost per Child

Answer 1

4.

Highest activity cost = $13,670

Lowest activity cost = $8,050

Highest activity = 188

Lowest activity = 90

Variable cost per child= (Highest activity cost - Lowest activity cost)/(Highest activity - Lowest activity)

= (13,670-8,050)/(188-90)

= 5,620/98

= $57.3469388 per child

Fixed cost = Highest activity cost - Highest activity x Variable cost per child

= 13,670- 188 x 57.3469388

= 13,670-10,781.22

= $2,888.78

Fixed cost	$2,888.78
Variable cost per child	$57.3469388

5.

The estimated month overhead costs when expect 170 children attend a session:

Total cost = Fixed cost+ Variable cost x Number of children

= 2,888.78+ 57.3469388 x 170

= 2,888.78+9,748.98

= $12,637.76

Expected cost

$12,637.76

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