Ambassador Suites Inc., operates a downtown hotel property that has 300 rooms. On average, 80% of Ambassador Suites's rooms are occupied on weekdays, and 40% are occupied during the weekend. The manager has asked you to develop a direct labor budget for the housekeeping and restaurant staff forweekdays and weekends. You have determined that the housekeeping staff requires 40 minutes to clean each occupied room. The housekeeping staff is paid $10 per hour. The restaurant has 6 full-time staff (eight-hour day) on duty, regardless of occupancy. However, for every 20 occupied rooms, an additionalperson is brought in to work in the restaurant for the eight-hour day. The restaurant staff is paid $8 per hour.Determine the estimated housekeeping, restaurant, and total direct labor cost for an average weekday and average weekend day. Enter percentages as whole numbers.Ambassador Suites Inc.Direct Labor Cost BudgetFor a Weekday or a Weekend DayWeekdayWeekend DayRoom occupancyRoom capacityOccupied percent%XRooms occupiedHousekeepingNumber of minutes to clean a roomTotal minutesTotal hoursLabor rate per hourX$X$Housekeeping daily labor budget2$Restaurant staffBase restaurant staffIncremental 20 room blocksTotal staffHours per dayTotal hoursLabor rate per hourX$X$Restaurant staff daily labor budget$4Total daily labor budget

bassador Suites Inc., operates a downtown hotel property that has 300 rooms. On average, 80% of Ambassador Suites's rooms are occupied on weekdays, and 40% are occupied during the weekend. The manager has asked you to develop a direct labor budget for the housekeeping and restaurant sta ekdays and weekends. You have determined that the housekeeping staff requires 40 minutes to clean each occupied room. The housekeeping staff is paid $10 per hour. The restaurant has 6 full-time staff (eight-hour day) on duty, regardless of occupancy. However, for every 20 occupied rooms, an ade son is brought in to work in the restaurant for the eight-hour day. The restaurant staff is paid $8 per hour. termine the estimated housekeeping, restaurant, and total direct labor cost for an average weekday and average weekend day. Enter percentages as whole numbers. Ambassador Suites Inc. Direct Labor Cost Budget For a Weekday or a Weekend Day Weekday Weekend Day Dom occupancy oom capacity ccupied percent poms occupied ousekeeping umber of minutes to clean a room X otal minutes otal hours abor rate per hour ousekeeping daily labor budget estaurant staff ase restaurant staff ncremental 20 room blocks otal staff ours per day ptal hours

bassador Suites Inc., operates a downtown hotel property that has 300 rooms. On average, 80% of Ambassador Suites's rooms are occupied on weekdays, and 40% are occupied during the weekend. The manager has asked you to develop a direct labor budget for the housekeeping and restaurant sta ekdays and weekends. You have determined that the housekeeping staff requires 40 minutes to clean each occupied room. The housekeeping staff is paid $10 per hour. The restaurant has 6 full-time staff (eight-hour day) on duty, regardless of occupancy. However, for every 20 occupied rooms, an ade son is brought in to work in the restaurant for the eight-hour day. The restaurant staff is paid $8 per hour. termine the estimated housekeeping, restaurant, and total direct labor cost for an average weekday and average weekend day. Enter percentages as whole numbers. Ambassador Suites Inc. Direct Labor Cost Budget For a Weekday or a Weekend Day Weekday Weekend Day Dom occupancy oom capacity ccupied percent poms occupied ousekeeping umber of minutes to clean a room X otal minutes otal hours abor rate per hour ousekeeping daily labor budget estaurant staff ase restaurant staff ncremental 20 room blocks otal staff ours per day ptal hours

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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The Gourmand Cooking School runs short cooking courses at its small campus. Management has identified two cost drivers it uses in its budgeting and performance reports—the number of courses and the total number of students. For example, the school might run two courses in a month and have a total of 64 students enrolled in those two courses. Data concerning the company’s cost formulas appear below: Fixed Cost per Month Cost per Course Cost per Student Instructor wages $ 2,920 Classroom supplies $ 300 Utilities $ 1,250 $ 55 Campus rent $ 4,900 Insurance $ 2,200 Administrative expenses $ 3,700 $ 42 $ 6 For example, administrative expenses should be $3,700 per month plus $42 per course plus $6 per student. The company’s sales should average $850 per student. The company planned to run four courses with a total of 64 students; however, it actually ran four courses with a total of only 62 students. The actual operating results for September…
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