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Activity-based costing for a service business The Grand Hotel uses activity-based costing to determine the cost of servicing customers. There are three activity pools:
Activity-based costing for a service business The Grand Hotel uses activity-based costing to determine the cost of servicing customers. There are three activity pools: guest check-in, room cleaning, and meal service. The activity rates associated with each activity pool are $8.10 per guest check-in, $18.00 per room cleaning, and $2.00 per served meal (not including food). Nikita Johnson visited the hotel for a 4-night stay. Nikita had 7 meals in the hotel during the visit. Determine the total activity-based cost for Nikita's visit. Feedback Check My Work Calculate: Number of activities x Activity rate Cost of activity Sum all activity costs to determine the total.
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