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ABC Hotels controller developed the following data for use in activity-based costing: Complete the calculations to help you answer the questions below: Use activity-based costing
ABC Hotels controller developed the following data for use in activity-based costing: Complete the calculations to help you answer the questions below:
Use activity-based costing to allocate the costs of overhead per unit and in total to each guest room type. Show all supporting calculations in the space provided.
Calculate the cost of one Presidential Suite using activity-based costing.
Presidenti Suite Presidential Suite Total SquareCost per Standard GuestJunior Suite Standard Guest Room Manufacturing overhead AmountCost driver Junior Suite Check Feet square foot room 110,000 square feet Depreciation $3,200,000 Square teet 50,000 30,000 30,000 29.09 $ 1,454,545 872,727 S 872,727 S 3,200,000 $1,800,000 Direct labor 471,500 Direct Labor Hours Maintenance 180,000 143,000 148,500 hours # of purchase orders #of inspections Units 13,000 purchase orders 5,350 inspections Purchasing $320,000 ! 2,500 1,500 9,000 Inspection $850,000 1,000 850 3,500 Indirect 285 Units manufactured $490,000 manufacture 150 110 25 materials #of 5,350 Supervision Supplies Total $1,700,000 $190,000 $8,550,000 1,000 850 3500 ins Units nanufacture 285 Units manufactured 150 110 25 234,800 176,420 194,550
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