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Newroute, a large hotel chain, has been using activity-based costing to determine the cost of a night's stay at their hotels 1. (Click the icon
Newroute, a large hotel chain, has been using activity-based costing to determine the cost of a night's stay at their hotels 1. (Click the icon to view additional information.) Svlvia gathers information for weekly inspection costs, rooms inspected, and inspection labor-hours as follows: (Click the icon to view the information gathered.) Read the requirements. Requirement 1. Explain why number of units inspected and inspection labor-hours are plausible cost drivers of inspection costs. room. (After you hit continue, the screen may take you below the beginning of the next step. If so, scroll back up to the top of the step.) Requirements 1. Explain why rooms inspected and inspection labor-hours are plausible cost drivers of inspection costs. 2. Plot the data and regression line for rooms inspected and inspection costs. Plot the data and regression line for inspection labor-hours and inspection costs. Which cost driver of inspection costs would you choose? Explain. 3. Sylvia expects inspectors to inspect 256 rooms and work for 109 hours next week. Using the cost driver you chose in requirement 2, what amount of inspection costs should Sylvia budget? Explain any implications of Sylvia choosing the cost driver you did not choose in requirement 2 to budget inspection costs. Newroute, a large hotel chain, has been using activity-based costing to determine the cost of a night's stay at their hotels 1. (Click the icon to view additional information.) Svlvia gathers information for weekly inspection costs, rooms inspected, and inspection labor-hours as follows: (Click the icon to view the information gathered.) Read the requirements. Requirement 1. Explain why number of units inspected and inspection labor-hours are plausible cost drivers of inspection costs. room. (After you hit continue, the screen may take you below the beginning of the next step. If so, scroll back up to the top of the step.) Requirements 1. Explain why rooms inspected and inspection labor-hours are plausible cost drivers of inspection costs. 2. Plot the data and regression line for rooms inspected and inspection costs. Plot the data and regression line for inspection labor-hours and inspection costs. Which cost driver of inspection costs would you choose? Explain. 3. Sylvia expects inspectors to inspect 256 rooms and work for 109 hours next week. Using the cost driver you chose in requirement 2, what amount of inspection costs should Sylvia budget? Explain any implications of Sylvia choosing the cost driver you did not choose in requirement 2 to budget inspection costs
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