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

Question

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

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

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 $8.60 per guest check-in, $18.00 per room cleaning, and $3.00 per served meal (not including food). Brian Campbell visited the hotel for a 6-night stay. Brian had 8 meals in the hotel during the visit. Determine the total activity-based cost for Campbell's visit during the month. Round your answer to the nearest cent.

Answers

Total activity based cost = $140.60

Activity cost pools

Activity based overhead rates

X

Actual use of activity base

=

Activity based cost

Guest check-ins

$8.60 per guest check in

X

1

=

8.60

Room cleaning

$18 per room cleaning

X

6

=

108

Meal service

$3 per served meal

X

8

=

24

$140.60


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