Financial And Managerial Accounting
15th Edition
ISBN: 9781337902663
Author: WARREN, Carl S.
Publisher: Cengage Learning,
expand_more
expand_more
format_list_bulleted
Question
Chapter 15, Problem 6BE
a.
To determine
Calculate the guest nights of Hotel J for the months of June.
b.
To determine
Calculate the available room nights of Hotel J for the month of June.
c.
To determine
Calculate the occupancy rate of Hotel J for the month of June.
d.
To determine
Identify whether the occupancy utilization rate of Hotel J has been improved or declined.
Expert Solution & Answer
Trending nowThis is a popular solution!
Students have asked these similar questions
The problem says:
jakes cabins is a small hotel chain with locations near the national parks of Utah Wyoming Montana. The chain has a total of 500 guestrooms. The following operating data are available for June. See the attached photo.
I need to figure out how I determine the available room nights for June and how I determine the occupancy rate for June.
Vernon Cabins is a small motel chain located near state and national parks. Each property is made up of separate cabins. The chain has 10 properties with an average of 15 cabins at each property. In year 1, the occupancy rate (the number of rooms filled divided by the number of rooms available) was 80 percent, based on a 180-day season. The properties are closed from late fall until early spring. The average rate was $225 per night per cabin. The basic unit of operation is the “night,” which is one cabin occupied for one night.
The operating income for year 1 is as follows.
Vernon Cabins
Operating Income
Year 1
Sales revenue
Lodging
$ 4,860,000
Incidentals
475,200
Forfeited deposits
129,600
Total revenues
$ 5,464,800
Costs
Labor
$ 1,748,000
Incidentals
451,200
Miscellaneous
86,400
Utilities, etc.
95,000
Depreciation
550,000
Management
120,000
Marketing
230,000
Property taxes
1,640,000
Total costs
$ 4,920,600
Operating profit
$ 544,200
Other…
Sunrise Suites and Nationwide Inns operate competing hotel chains across the region. Hotel capacity information for both hotels is as follows:
Number of Hotels
Average Number of Rooms per Hotel
Sunrise Suites
120
90
Nationwide Inns
150
76
Information on the number of guests for each hotel and the average length of visit for June were as follows:
Number of Guests
Average Length of Visit (in Nights)
Sunrise Suites
183,600
1.5
Nationwide Inns
228,000
1.2
a. Determine the guest nights for each hotel in June.
Guest Nights
Sunrise Suites
fill in the blank 1
Nationwide Inns
fill in the blank 2
b. Determine the room nights for each hotel in June.
Room Nights
Sunrise Suites
fill in the blank 3
Nationwide Inns
fill in the blank 4
c. Determine the occupancy rate of each hotel in June.
Occupancy Rate
Sunrise Suites
fill in the blank 5
%
Nationwide Inns
fill…
Chapter 15 Solutions
Financial And Managerial Accounting
Ch. 15 - What are the major differences between managerial...Ch. 15 - Prob. 2DQCh. 15 - Prob. 3DQCh. 15 - Distinguish between prime costs and conversion...Ch. 15 - What is the difference between a product cost and...Ch. 15 - Name the three inventory accounts for a...Ch. 15 - In what order should the three inventories of a...Ch. 15 - What are the three categories of manufacturing...Ch. 15 - How do the manufacturing costs incurred during a...Ch. 15 - How does the Cost of goods sold section of the...
Ch. 15 - Management process Three phases of the management...Ch. 15 - Direct materials, direct labor, and factory...Ch. 15 - Prob. 3BECh. 15 - Product and period costs Identify the following...Ch. 15 - Cost of goods sold, cost of goods manufactured...Ch. 15 - Prob. 6BECh. 15 - Prob. 1ECh. 15 - Indicate whether the following costs of Procter ...Ch. 15 - Prob. 3ECh. 15 - For apparel manufacturer Abercrombie Fitch, Inc....Ch. 15 - From the choices presented in parentheses, choose...Ch. 15 - From the choices presented in parentheses, choose...Ch. 15 - Classifying costs In a service company A partial...Ch. 15 - Classifying costs The following is a manufacturing...Ch. 15 - Financial statements of a manufacturing firm The...Ch. 15 - Manufacturing company balance sheet Partial...Ch. 15 - Cost of direct materials used in production for a...Ch. 15 - Cost of goods manufactured for a manufacturing...Ch. 15 - Cost of goods manufactured for a manufacturing...Ch. 15 - Income statement for a manufacturing company Two...Ch. 15 - Statement of cost of goods manufactured for a...Ch. 15 - Cost of goods sold, profit margin, and net income...Ch. 15 - Cost flow relationships The following information...Ch. 15 - The following is a list of costs that were...Ch. 15 - The following is a list of costs incurred by...Ch. 15 - A partial list of Foothills Medical Centers costs...Ch. 15 - Manufacturing income statement, statement of cost...Ch. 15 - Statement of cost of goods manufactured and income...Ch. 15 - The following is a list of costs that were...Ch. 15 - Prob. 2PBCh. 15 - A partial list of The Grand Hotels costs follows:...Ch. 15 - Several items are omitted from the income...Ch. 15 - Statement of cost of goods manufactured and income...Ch. 15 - Comfort Plus, Inc., has a hotel with 300 rooms in...Ch. 15 - Hilton Hotels and Marriott International:...Ch. 15 - Comparing occupancy for two hotels Sunrise Suites...Ch. 15 - Prob. 4MADCh. 15 - Prob. 5MADCh. 15 - Prob. 1TIFCh. 15 - Communication Todd Johnson is the Vice President...Ch. 15 - For each of the following managers, describe how...Ch. 15 - The following situations describe scenarios that...Ch. 15 - Geek Chic Company provides computer repair...Ch. 15 - Which of the following items would not be...Ch. 15 - Prob. 2CMACh. 15 - A firm has 100,000 in direct materials costs,...Ch. 15 - In practice, items such as wood screws and glue...
Knowledge Booster
Similar questions
- Comfort Plus, Inc., has a hotel with 300 rooms in a metropolitan city. Its main competitor, Connors Hotel, has a hotel with 350 rooms in the same city. The following operating data are available for April for the two hotels: a. Determine the guest nights for each hotel in April. b. Determine the available room nights for each hotel in April. c. Determine the occupancy rate for each hotel in April. d. Which hotel has the better utilization of capacity in April?arrow_forwardThe Valley Hospital measures the in-patient occupancy of the hospital by determining the number of patient days divided by the number of available bed days in the hospital for a time period. The following in-patient data are available for the months of April, May, and June: April May June Admitted patients 1,440 1,860 2,250 Average length of stay per patient 4.0 days 3.5 days 3.0 days The hospital has 200 rooms. One hundred rooms are private and have a single bed per room.The other hundred rooms are semi-private with two beds per room. a. Determine the number of in-patient days for each month. Number of in-patient Days April fill in the blank 1 May fill in the blank 2 June fill in the blank 3 b. Determine the available bed days for each month. Available Bed Days April fill in the blank 4 May fill in the blank 5 June fill in the blank 6 c. Determine the occupancy…arrow_forwardThe following frequency distribution reports the number of frequent flier miles, reported in thousands, for employees of Brumley Statistical Consulting Incorporated during the most recent quarter. Frequent Flier Miles (000) Number of Employees 0 up to 4 4 4 up to 8 10 8 up to 12 24 12 up to 16 9 16 up to 20 1 Total 48 Required: How many employees were studied? What is the midpoint of the first class? Note: Enter the answer in thousands. Round your answer to 1 decimal place. Midpoint _______thousand frequent flier miles A frequency polygon is to be drawn. What are the coordinates of the plot for the first class? Note: Round your answers to 1 decimal place. X = Y =arrow_forward
- Assume a hotel rented 400, 480, and 420 rooms in the months of April, May, andJune, respectively; and the total housekeeping costs for the three months in question were $6,000, $6,800, and $6,200. With use of the high-low method, what is theamount of monthly fixed housekeeping costs?a. $1,000b. $1,500c. $2,000d. $2,500arrow_forwardValley Hospital measures the in-patient occupancy of the hospital by determining the number of patient days divided by the number of available bed days in the hospital for a time period. The following in-patient data are available for the months of April, May, and June: April May JuneAdmitted patients 1, 440 1, 860 2, 250 Average length of stay per patient 4.0 days 3.5 days 3.0 daysThe hospital has 200 rooms. One hundred rooms are private and have a single bed per room. The other 100 rooms are semi-private with two beds per room. a. Determine the number of in-patient days for each month.b. Determine the available bed days rate for each month.c. Determine the occupancy rate for each month.d. Interpret the results in (c).arrow_forwardPlease help mearrow_forward
- The Cheyenne Hotel in Big Sky. Montana, has accumulated records of the total electrical costs of the hotel and the number of occupancy-days over the last year. An occupancy-day represents a room rented for onie day. The hotel's business is highly seasonal, with peaks occunting during the ski season and in the summer. Honth January February March Aoril May June July August Septenber October Novenber Decenber Occupancy-Davs 4. 260 3.650 3. 160 2.150 2.260 1.450 3. 180 3.750 2.220 3.580 1,690 2.750 Electrical Conts $ 15.002 $ 14,112 $ 13.272 $9.000 $9.432 $6.00 S 19.356 $ 14.532 $9,324 $6.636 $7. 000 $ 11.580 Required: 1. Using the high-low method, estimate the fixed cost of electricity per month and the variable cost of electricity per occupancy day. (Do not round your intermediate calculations. Round your Variable cost answer to 2 decimal places and Fixed cost element answer to nearest whole dollar amount.) es Variable cost of electricity Fixed cost of electricity per occupancy day per…arrow_forwardOsborne Manufacturing produces self-watering planters for use in upscale retail establishments. Sales projections for the first five months of the upcoming year show the estimated unit sales of the planters each month to be as follows: The data from the table are as follows: # of planters to be sold January: 3,400 February: 3,800 March: 3,300 April: 4,900 May: 4,600. Inventory at the start of the year was 850 planters. The desired inventory of planters at the end of each month in the upcoming year should be equal to 25% of the following month’s budgeted sales. Each planter requires three pounds of polypropylene (a type of plastic). The company wants to have 20% of the polypropylene required for next month’s production on hand at the end of each month. The polypropylene costs $0.20 per pound. Requirements Prepare a production budget for each month in the first quarter of the year,…arrow_forwardComparing occupancy for two hotels Sunrise Suites and Nationwide Inns operate competing hotel chains across the region. Hotel capacity information for both hotels is as follows: Information on the number of guests for each hotel and the average length of visit for June were as follows: A. Determine the guest nights for each hotel in June. B. Determine the room nights for each hotel in June. C. Determine the occupancy rate of each hotel in June. D. Interpret the results in (C).arrow_forward
- Please Complete all pasts and Do not give solution in image formatarrow_forwardA motel had the following business on a particular week. Number Occupied Type of room Sun Nightly 5-day Week 60 50 7-day Week 80 Weekend only Mon Tues Wed 60 60 60 50 50 50 80 80 80 Thu 60 50 80 Fri 80 80 Sat 80 80 Rate per night $100 $80 $60 $70 If there are 200 rooms and the operating costs are $20,000 plus a cleaning fee of $5 per room per day, compute the profit during the one-week period $64,891 $68,450 $74,800 $88,450arrow_forwardBruin Wholesale has gathered the following data on the number of shipments received and the cost of receiving reports for the first seven weeks of 2010. Number of Shipment Received Weekly Cost of Receiving Reports 50 $175 44 162 40 154 35 142 53 185 58 200 60 202 a. Using the high-low method, develop the equation for predicting weekly receiving report costs based on the number of shipments received. b. What is the predicted amount of receiving report costs for a week in which 72 shipments are received? c. What are the concerns you have regarding your prediction from part (b)?arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Managerial AccountingAccountingISBN:9781337912020Author:Carl Warren, Ph.d. Cma William B. TaylerPublisher:South-Western College PubFinancial And Managerial AccountingAccountingISBN:9781337902663Author:WARREN, Carl S.Publisher:Cengage Learning,
Cornerstones of Cost Management (Cornerstones Ser...AccountingISBN:9781305970663Author:Don R. Hansen, Maryanne M. MowenPublisher:Cengage Learning
Principles of Accounting Volume 2AccountingISBN:9781947172609Author:OpenStaxPublisher:OpenStax College
Managerial Accounting
Accounting
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:South-Western College Pub
Financial And Managerial Accounting
Accounting
ISBN:9781337902663
Author:WARREN, Carl S.
Publisher:Cengage Learning,
Cornerstones of Cost Management (Cornerstones Ser...
Accounting
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Cengage Learning
Principles of Accounting Volume 2
Accounting
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax College