It will be very helpfull if someone could help me find answers to questions 9 thru 13 only. I have answers for all questions from 1 thru 8. Thanks in advance.

1. The cost-allocation system Choice Hotels has been using allocates over 90 percent of overhead costs to the Standard Guest Room and the Junior Suite, because over 90 percent of the models produced were one of these two models. How much overhead was allocated to each of the three models last year? Discuss why this might not be an accurate way to assign overhead costs to products.

2. How would the use of more than one cost pool improve Choice Hotels cost allocation?

3. Choice Hotels' production manager proposes allocating overhead by direct labor hours instead, since the different models require different amounts of labor. How much overhead would be allocated to each guest room (per unit and in total) using this method? Show all supporting calculations.

4. 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.

5. Calculate the cost of one Presidential Suite using activity-based costing.

6. Why are the costs different between the traditional method and the activity-based method?

7. At the current selling price, is the company covering its true cost of production of the Presidential Suite? Briefly discuss.

8. What should price should Choice Hotels charges for the Presidential Suite?

9. Assume that the Presidential Suite has the same profit margin as the Standard Guest Room. What should its selling price be? Show all calculations.

10. What should Choice Hotels do if the quantity of the Presidential Suite Guest Rooms sold at the new price falls to 10 per year?

11. What should Choice Hotels do if the price of the Presidential Suite cannot exceed $1,050,000?

12. At a selling price of $1,050,000 each, what is the breakeven unit volume for the Presidential Suite?

13. What are the lessons learned from this case?

Choice Hotels' controller developed the following data for use in activity-based costing Manufacturing overhead Junior Suite Presidential Amount Cost driver Standard Guest Room Suite $3,200,00 0 Depreciation Square feet 50,000 30,000 30,000 $1,800,00 Direct labor Maintenance 180,000 143,000 148,500 0 hours # of purchase orders Purchasing $320,000 2,500 1,500 9,000 Inspection #of inspections $850,000 1,000 850 3,500 Indirect Units manufactured $490,000 150 110 25 materials $1,700,00 #of Supervision Supplies Total 1,000 850 3.5 0 $190,000 $8,550,00 inspections Units manufactured 150 110 25 0