You Have Just Started Your New Job as a Staff

Essay

You have just started your new job as a staff accountant for a local business. The President and owner of the company has asked you to help him to create a budget for utility costs for next year. He is specifically interested in estimating the cost for the electric for the upcoming fiscal year. He has provided you with the utility bills for the last 6 months, along with the login for the online account with the utility company to access additional information. Required: The company President is asking you to budget for the total annual electric costs using the account analysis method using the following information with the expectation that the total kWH usage for the next fiscal year will be based on the average usage over the last six months for a monthly usage to be annualized, with an increase in the kWH rate of 10% (the monthly base fee will not change for next year):