Direct Labor Budget-Service Business Ambassador Suites Inc., operates a downtown hotel property that has 600 rooms. On average, 90% of Ambassador Suites's rooms are occupied on weekdays, and 60% are occupied during the weekend. The manager has asked you to develop a direct labor budget for the housekeeping and restaurant staff for weekdays and weekends. You have determined that the housekeeping staff requires 40 minutes to clean each occupied room. The housekeeping staff is paid $12 per hour. The restaurant has 12 full-time staff (eight-hour day) on duty, regardless of ocupancy. However, for every 20 occupied rooms, an additional person is brought in to work in the restaurant for the eight-hour day. The restaurant staff is paid $10 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 Budget For a Weekday or a Weekend Day Weekday Weekend Day Room occupancy Room capacity Occupied percent Rooms occupied Housekeeping Number of minutes to clean a room x Total minutes Total hours Labor rate per hour Housekeeping daly labor budget Restaurant staff Base restaurant staff Incremental 20 room blocks Total staff Hours per day Total hours Labor rate per hour Restaurant staff daily labor budget Total daily labor budget
Direct Labor Budget-Service Business Ambassador Suites Inc., operates a downtown hotel property that has 600 rooms. On average, 90% of Ambassador Suites's rooms are occupied on weekdays, and 60% are occupied during the weekend. The manager has asked you to develop a direct labor budget for the housekeeping and restaurant staff for weekdays and weekends. You have determined that the housekeeping staff requires 40 minutes to clean each occupied room. The housekeeping staff is paid $12 per hour. The restaurant has 12 full-time staff (eight-hour day) on duty, regardless of ocupancy. However, for every 20 occupied rooms, an additional person is brought in to work in the restaurant for the eight-hour day. The restaurant staff is paid $10 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 Budget For a Weekday or a Weekend Day Weekday Weekend Day Room occupancy Room capacity Occupied percent Rooms occupied Housekeeping Number of minutes to clean a room x Total minutes Total hours Labor rate per hour Housekeeping daly labor budget Restaurant staff Base restaurant staff Incremental 20 room blocks Total staff Hours per day Total hours Labor rate per hour Restaurant staff daily labor budget Total daily labor budget
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Concept explainers
Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
Question
Transcribed Image Text:Direct Labor Budget-Service Business
Ambassador Suites Inc., operates a downtown hotel property that has 600 rooms. On average, 90% of Ambassador Suites's rooms are occupied on weekdays, and 60% are occupied during the weekend. The manager has asked you to develop a direct labor budget for the housekeeping and restaurant staff for
weekdays and weekends. You have determined that the housekeeping staff requires 40 minutes to clean each occupied room. The housekeeping staff is paid $12 per hour. The restaurant has 12 full-time staff (eight-hour day) on duty, regardless of occupancy. However, for every 20 occupied rooms, an additional
person is brought in to work in the restaurant for the eight-hour day. The restaurant staff is paid $10 per hour.
Determine the estimated housekeeping, restaurant, and total direct labor cost for an average weekday and average weekend day. Enter percentages as whole numbers.
Ambassador Suites Inc.
Direct Labor Cost Budget
For a Weekday or a Weekend Day
Weekday
Weekend Day
Room occupancy
Room capacity
Occupied percent
X
%
X
%
Rooms occupied
Housekeeping
Number of minutes to clean a room
X
Total minutes
Total hours
Labor rate per hour
X$
X$
Housekeeping daily labor budget
$
Restaurant staff
Base restaurant staff
Incremental 20 room blocks
Total staff
urs per day
X
Total hours
Labor rate per hour
X$
X$
Restaurant staff daily labor budget
Total daily labor budget
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education