Agbalenyo 5 Star Hotel Ltd has re-engineered its costing system and has grouped its core activities into four cost centres.

1. Accommodation
2. Catering
3. Leisure
4. Outings

The hotel has a mouth-watering standardised services, which it offers to customers as a special package. The package includes Accommodation, Meals, use of Leisure facilities and a number of Outings. The price per day for the use of each cost centre by the customer is predetermined. Materials and labour can be identified with cost centres in the budget but other overheads listed below cannot be so easily identified.         

	Accommodation	Catering	Leisure	Outings	Total
	GHȼ000	GHȼ000	GHȼ000	GHȼ000	GHȼ000
Labour	55	50.25	17.5	19.25	142
Materials	9.5	18	8	6.5	42
Power					42

Rent & Rates                                                                                                                          36

Depreciation                                                                                                                           30

Advertising                                                                                                                             38

Office Expenses                                                                                                                     120

You are given the following information about the cost centres from the budget for the coming year.

	Accommodation	Catering	Leisure	Outings
Floor Area (in sq metre)	600	200	300	100
Number of Employees	16	8	12	4
Machinery Value (in GHȼ)	5,000	10,000	30,000	15,000
Kilowatt Hours	2500	1250	6250	500
Expected Consumers’ Usage in days	7,500	6000	4000	1500

                                                  

Advertising is to be apportioned to the Cost Centres on the basis of customer usage.   

Office Expenses should be apportioned on the basis of total Cost per cost Centre before the apportionment of the office Expenses.  

It is the policy of the hotel that:  

1. Customers should have the standard Accommodation and catering package but the Leisure facilities and Outings package as optional.  
2. To operate at a profit mark-up of 30% on cost 
3. 
   
4. Required:  

1. Prepare a Cost Statement for the FOUR cost centres showing
   1. The budgeted total cost for each cost centre 
   2. The budgeted cost per day per Cost Centre 
2. Calculate the price to be charged to Mr. and Mrs. Tagborlo who want to use the hotel for their honeymoon for one week. They require Accommodation and Catering for seven days, use of

Leisure facilities for three days and want to go on Outings on three days. 

3. Distinguish between process costing and job costing.