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Sphinxa [80]
3 years ago
7

Sterling Hotel uses activity-based costing to determine the cost of servicing customers. There are three activity pools: guest c

heck-in, room cleaning, and meal service. The activity rates associated with each activity pool are $8.00 per guest check-in, $20.00 per room cleaning, and $4.00 per served meal (not including food). Julie Washington visited the hotel for a 7-night stay. Julie had 6 meals in the hotel during the visit. Determine the total activity-based cost for Washington's visit during the month. Round your answer to the nearest cent.
Business
1 answer:
ahrayia [7]3 years ago
4 0

Answer:

Total cost= $172

Explanation:

Giving the following information:

guest check-in= $8 per guest check-in

room cleaning= $20 per room

meal service= $4 per served meal

Julie Washington visited the hotel for a 7-night stay. Julie had 6 meals in the hotel during the visit.

<u>To calculate the total cost, we need to use the following formula:</u>

<u></u>

Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base

<u></u>

guest check-in= 8*1= 8

room cleaning= 20*7= 140

meal service= 4*6= 24

Total cost= $172

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