Question
The following three hotels are operated by XYZ Company Hotel No. Rooms Annual revenue 1 200 6,750,000 2 250 9,000,000 3 300 11,250,000 4 150
The following three hotels are operated by XYZ Company
Hotel No.
Rooms
Annual revenue
1
200
6,750,000
2
250
9,000,000
3
300
11,250,000
4
150
4,500,000
5
350
13,500,000
Total
1250
45,000,000
The overhead costs incurred by XYZ Company to operate the upper three hotels are
Position
Salary
Related expenses
Total
General Manager
300,000
50,000
350,000
Financial Manager
200,000
25,000
225,000
Total
575,000
Instructions:
Use the tabulation below to allocate the overhead costs that pertains to XYZ Company based on the annual revenue generated by each hotel.
Note: I have attached the question in a word format
Total O.H
Hotel No.
Annual revenue
% of total rev.
$ O.H allocated
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Sound Investing, Chapter 7 - Cash Versus Accrual
Authors: Kate Mooney
1st Edition
0071719296, 9780071719292
