Activity-based costing for a service business The Grand Hotel uses activity-based costing to determine the cost of servicing customers. There are three activity pools: guest check-in, room cleaning, and meal service. The activity rates associated with each activity pool are $8.40 per guest check-in, $22.00 per room cleaning, and $2.00 per served meal (not including food). Nikita Johnson visited the hotel for a 5-night stay. Nikita had 5 meals in the hotel during the visit. Determine the total activity-based cost for Nikita's visit.

Activity-based costing for a service business The Grand Hotel uses activity-based costing to determine the cost of servicing customers. There are three activity pools: guest check-in, room cleaning, and meal service. The activity rates associated with each activity pool are $8.40 per guest check-in, $22.00 per room cleaning, and $2.00 per served meal (not including food). Nikita Johnson visited the hotel for a 5-night stay. Nikita had 5 meals in the hotel during the visit. Determine the total activity-based cost for Nikita's visit.

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Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter4: Activity-based Costing

Section: Chapter Questions

Problem 5BE: Activity-based costing for a service business Sterling Hotel uses activity-based costing to...

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The Grand Hotel uses activity-based costing to determine the cost of servicing customers. There are three activity pools: guest check-in, room cleaning, and meal service. The activity rates associated with each activity pool are $9 per guest check-in, $15 per room cleaning, and $5 per served meal (not including food). Nikita Johnson visited the hotel for a three-night stay. Nikita had three meals in the hotel during her visit. Determine the total activity-based cost for Nikita’s visit.
Sterling Hotel uses activity-based costing to determine the cost of servicing customers. There are three activity pools: guest check-in, room cleaning, and meal service. The activity rates associated with each activity pool are $8.10 per guest check-in, $24.00 per room cleaning, and $4.00 per served meal (not including food). Tara Stone visited the hotel for a 4-night stay. Tara had 5 meals in the hotel during the visit. Determine the total activity-based cost for Stone's visit during the month. Round your answer to the nearest cent.$fill in the blank 1
ctivity-Based Costing for a Service Business Sterling Hotel uses activity-based costing to determine the cost of servicing customers. There are three activity pools: guest check-in, room cleaning, and meal service. The activity rates associated with each activity pool are $8 per guest check-in, $25 per room cleaning, and $4 per served meal (not including food). Ginny Campbell visited the hotel for a three-night stay. Campbell had three meals in the hotel during her visit. Determine the total activity-based cost for Campbell's visit.
Cathy, the manager of Cathy's Catering, Inc., uses activity-based costing to compute the costs of her catered parties. Each party is limited to 20 guests and requires 4 people to serve and clean up. Cathy offers two types of parties-an afternoon picnic and an evening formal dinner. The breakdown of the costs follows. Activities (and cost drivers) Advertising (parties) Planning (parties) Renting equipment (parties, guests) Obtaining insurance (parties) Serving (parties, servers) Preparing food (guests) Afternoon Picnic party $ 111 per party $ 86 per $ 58 per party plus $11 per guest $170 per party $43 per server per party $ 18 per guest Complete this question by entering your answers in the tabs below. Required A Per party costs do not vary with the number of guests. Required: a. Compute the cost of a 20-guest afternoon picnic. b. Compute the cost of a 20-guest evening formal dinner. c. How much should Cathy charge for each guest for each type of party if she wants to cover her costs?…
Cathy, the manager of Cathy’s Catering, Inc., uses activity-based costing to compute the costs of her catered parties. Each party is limited to 20 guests and requires 4 people to serve and clean up. Cathy offers two types of parties an afternoon picnic and an evening formal dinner. The breakdown of the costs follows. Activities (and cost drivers) Afternoon Picnic Formal Dinner Advertising (parties) $ 79 per party $ 79 per party Planning (parties) $ 94 per party $ 108 per party Renting equipment (parties, guests) $ 42 party plus $15 per guest $ 68 per party plus $20 per guest Obtaining insurance (parties) $ 180 per party plus $ 425 per party Serving (parties, servers) $ 58 per server per party $ 69…
Cathy, the manager of Cathy’s Catering, Inc., uses activity-based costing to compute the costs of her catered parties. Each party is limited to 20 guests and requires 4 people to serve and clean up. Cathy offers two types of parties—an afternoon picnic and an evening formal dinner. The breakdown of the costs follows. Activities (and cost drivers) Afternoon Picnic Formal Dinner Advertising (parties) $ 119 per party $ 119 per party Planning (parties) $ 98 per party $ 134 per party Renting equipment (parties, guests) $ 53 per party plus $14 per guest $ 79 per party plus $23 per guest Obtaining insurance (parties) $ 230 per party $ 370 per party Serving (parties, servers) $ 59 per server per party $ 67 per server per party Preparing food (guests) $ 20 per guest $ 34 per guest Per party costs do not vary with the number of guests. Required: Compute the cost of a 20-guest…
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Classification of costs, service sector. Market Focus is a marketing research firm that organizes focus groups for consumer-product companies. Each focus group has eight individuals who are paid $60 per session to provide comments on new products. These focus groups meet in hotels and are led by a trained, independent marketing specialist hired by Market Focus. Each specialist is paid a fixed retainer to conduct a minimum number of sessions and a per session fee of $2,200. A Market Focus staff member attends each session to ensure that all the logistical aspects run smoothly. Direct or indirect (D or I) costs of each individual focus group. Variable or fixed (V or F) costs of how the total costs of Market Focus change as the number of focus groups conducted changes. (If in doubt, select on the basis of whether the total costs will change substantially if there is a large change in the number of groups conducted.) You will have two answers (D or I; V or F) for each of the following…
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