Accounting
27th Edition
ISBN: 9781337272094
Author: WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher: Cengage Learning,
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Chapter 22, Problem 22.13EX
Direct labor budget for a service business
Ambassador Suites Inc. operates a downtown hotel property that has 300 rooms. On average, 80% of Ambassador Suites' 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 for weekdays and weekends. You have determined that the housekeeping staff requires 30 minutes to clean each occupied room. The housekeeping staff is paid $14 per hour. The housekeeping labor cost is fully variable to the number of occupied rooms. The restaurant has six full-time staff (eight-hour day) on duty, regardless of occupancy. However, for every 60 occupied rooms, an additional person is brought in to work in the restaurant for the eight-hour day. The restaurant staff is paid $12 per hour.
Determine the estimated housekeeping, restaurant, and total direct labor cost for an average weekday and average weekend day. Format the budget in two columns, labeled as weekday and weekend day.
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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…
Service Department Charges
Sharp Motor Company has two operating divisions—an Auto Division and a Truck Division. The company has a cafeteria that serves the employees of both divisions. The costs of operating the cafeteria are budgeted at $40,000 per month plus $3 per meal served. The company pays all the cost of the meals.
The fixed costs of the cafeteria are determined by peak-period requirements. The Auto Division is responsible for 65% of the peak-period requirements, and the Truck Division is responsible for the other 35%.
For June, the Auto Division estimated it would need 35,000 meals served, and the Truck Division estimated it would need 20,000 meals served. However, due to unexpected layoffs of employees during the month, only 20,000 meals were served to the Auto Division. Another 20,000 meals were served to the Truck Division as planned.
Cost records in the cafeteria show that actual fixed costs for June totaled $42,000 and actual meal costs totaled $128,000.
Required:
1.…
Cabinare Inc. Is one of the largest manufacturers of office furniture in the United States. In Grand Rapids Michigan and assembles filing cabinets in a assembly Department. Assume following nformation for the assembly departments:
Direct labor per filing cabinets 30 min
Supervisor salaries $132,000 per month
Depreciation $24,000 per month
Direct labor rate $21 per hr.
Prepare a flexible budget for 13,000,16,000,and 20,000 filing cabinets for the month ending February 28 in assembly departments similar to exhibit 5 Round your final answer to the whole dollar, if required.
Chapter 22 Solutions
Accounting
Ch. 22 - Prob. 22.1DQCh. 22 - Briefly describe the type of human behavior...Ch. 22 - What behavioral problems are associated with...Ch. 22 - What behavioral problems are associated with...Ch. 22 - Under what circumstances is a static budget...Ch. 22 - How do computerized budgeting systems aid firms in...Ch. 22 - Why should the production requirements set forth...Ch. 22 - Why should the timing of direct materials...Ch. 22 - a. Discuss the purpose of the cash budget. b. If...Ch. 22 - Prob. 22.10DQ
Ch. 22 - Flexible budgeting At the beginning of the period,...Ch. 22 - Flexible budgeting At the beginning of the period,...Ch. 22 - Production budget Daybook Inc. projected sales of...Ch. 22 - Prob. 22.2BPECh. 22 - Direct materials purchases budget Daybook Inc....Ch. 22 - Direct materials purchases budget Magnolia Candle...Ch. 22 - Direct labor cost budget Daybook Inc. budgeted...Ch. 22 - Direct labor cost budget Magnolia Candle Inc....Ch. 22 - Cost of goods sold budget Prepare a cost of goods...Ch. 22 - Cost of goods sold budget Prepare a cost of goods...Ch. 22 - Cash budget Daybook Inc. collects 30% of its sales...Ch. 22 - Cash budget Magnolia Candle Inc. pays 10% of its...Ch. 22 - Personal budget At the beginning of the school...Ch. 22 - Flexible budget for selling and administrative...Ch. 22 - Static budget versus flexible budget The...Ch. 22 - Flexible budget for Assembly Department Steelcase...Ch. 22 - Production budget Weightless Inc. produces a small...Ch. 22 - Sales and production budgets Sonic Inc....Ch. 22 - Professional fees earned budget for a service...Ch. 22 - Professional labor cost budget for a service...Ch. 22 - Direct materials purchases budget Lorenzo's Frozen...Ch. 22 - Prob. 22.10EXCh. 22 - Direct materials purchases budget Anticipated...Ch. 22 - Direct labor cost budget MatchPoint Racket Company...Ch. 22 - Direct labor budget for a service business...Ch. 22 - Production and direct labor cost budgets Levi...Ch. 22 - Factory overhead cost budget Sweet Tooth Candy...Ch. 22 - Cost of goods sold budget Wilmington Chemical...Ch. 22 - Cost of goods sold budget The controller of...Ch. 22 - Schedule of cash collections of accounts...Ch. 22 - Schedule of cash collections of accounts...Ch. 22 - Schedule of cash payments for a service company...Ch. 22 - Schedule of cash payments for a service company...Ch. 22 - Capital expenditures budget On January 1, 20Y2,...Ch. 22 - Forecast sales volume and sales budget For 20Y6,...Ch. 22 - Sales, production, direct materials purchases, and...Ch. 22 - Budgeted income statement and supporting budgets...Ch. 22 - Cash budget The controller of Sonoma Housewares...Ch. 22 - Budgeted income statement and balance sheet As a...Ch. 22 - Forecast sales volume and sales budget Sentinel...Ch. 22 - Sales, production, direct materials purchases, and...Ch. 22 - Budgeted income statement and supporting budgets...Ch. 22 - Cash budget The controller of Mercury Shoes Inc....Ch. 22 - Budgeted income statement and balance sheet As a...Ch. 22 - Prob. 22.1CPCh. 22 - Communication The city of Milton has an annual...Ch. 22 - Prob. 22.4CPCh. 22 - Static budget for a service company A bank manager...Ch. 22 - Objectives of the master budget Dominos Pizza...
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