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Dave, a hotel guest, checked into Hotel Mimosa for three days. Assume that Hotel Mimosa uses activity-based costing to allocate hotel overhead to guests. The
Dave, a hotel guest, checked into Hotel Mimosa for three days. Assume that Hotel Mimosa uses activity-based costing to allocate hotel overhead to guests. The activity information associated with Dave is as follows:
Activity Rate | ||
Room service | 3 days | $100 per day |
Car rental service | 10 hours | $80 per hour |
Laundry | 2 days | $50 per day |
Based on the information provided, the hotel's overhead costs allocated to Dave total:
a.$1,000.
b.$2,000.
c.$1,200.
d.$1,780.
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