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RoseWind [281]
3 years ago
5

What is the true about the cost of providing room service meals? The cost is equal to that of providing the dining room service

The cost is higher than that of providing dining room service The cost is lower than that of providing dining room service The cost is lower than that of providing dining room service but the cost is more than offset due to the higher prices charged for menu items served in the dining room
Business
1 answer:
Andrei [34K]3 years ago
4 0

Answer:

The cost is higher than that of providing dining room service

Explanation:

The single extra cost associated with providing 24 hour room service is full kitchen staff available 24/7. This is basically why room service is so expensive and at the same time makes hotels lose money. The only reason why most hotels keep offering it is that everyone else does.

It is basically an amenity that is very expensive for the customer and even more expensive for the hotel. Imagine having a full kitchen staff just to prepare 1 or 2 sandwiches. The cost of the sandwich is ridiculous and they cannot charge it completely either.

Generally the price of the food only covers the cost of the ingredients plus the cost of the room service clerk.

When the hotel provides dining room service they generally prepare 50 or more dishes, so the fixed costs are divided by many customers.

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DL and MOH budget: The Production Department of Top of The World Corporation has submitted the following forecast of units to be
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Answer and Explanation:

a. The computation of the total estimated direct labor cost is shown below:

Particulars     1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Year

Units to be produced 10,700 9,700 11,700 12,700 44,800

Multiply  Direct labor hour per unit 0.25 0.25 0.25 0.25 0.25

Total Direct labor hour required 2675 2425 2925 3175 11200

Multiply  Direct labor rate per hour $14 $14 $14 $14 $14

Estimated Direct labor cost $37,450 $33,950 $40,950 $44,450 $156,800

b.  The total estimated manufacturing cost and the cash disbursement is shown below:

Particulars 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Year

Units to be produced 10,700 9,700 11,700 12,700 44,800

Direct labor hour per unit 0.25 0.25 0.25 0.25 0.25

Multiply Total Direct labor hour required 2675 2425 2925 3175 11200

Variable manufacturing overhead rate $2 $2 $2 $2 $2

Estimated Variable manufacturing overhead cost $5,350 $4,850 $5,850 $6,350 $22,400

Add: Fixed manufacturing overhead $67,000 $67,000 $67,000 $67,000 $268,000

Total estimated manufacturing overhead $72,350 $71,850 $72,850 $73,350 $290,400

Less: depreciation $16,000 $16,000 $16,000 $16,000 $64,000

Cash disbursement for manufacturing overhead $56,350 $55,850 $56,850 $57,350 $226,400

We simply applied the above format to find out the manufacturing overhead, cash disbursement, and the direct labor cost

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