City Suites Hotels, Inc., operates a downtown hotel property that has 200 rooms. On average, 80% of City Suites’ rooms are occupied on weekdays, and 40% are occupied during the weekend. The manager has asked you to develop a direct labor budget for the housekeeping and restaurant staff. You have determined that the housekeeping staff requires 45 minutes to clean each occupied room. The housekeeping staff is paid $9 per hour. The restaurant has four full-time staff (8-hour day) on duty, regardless of occupancy. However, for every 20 occupied rooms, an additional person is brought in for the 8-hour day. The restaurant staff is paid $8 per hour.
To aid your budget preparations, determine the estimated housekeeping and restaurant direct labor cost for an average weekday and weekend day.