The service company. Excellent Maids, cleans hotel rooms at resorts on Hilton He

Question

The service company. Excellent Maids, cleans hotel rooms at resorts on Hilton Head Island. Excellent has identified three activities involved in cleaning. Information on those activities for the month of May follow:

At the Calypso Resort, the company cleaned 900 rooms during March, 1,200 public spaces, changed 1,600 beds, and cleaned 900 bath rooms. Using ABC, how much overhead is applied to each hotel room cleaned?

$9,450

$7,187

$15,400

Some other answer

Cost Pools Cost Drivers Estimated Overhead Cost Expected
Use of Cost Drivers Cleaning bed linens Number of beds $72,000 48,000 beds Cleaning bathrooms Number of bathrooms 64,000 32,000 bathrooms Other cleaning Number of hotel rooms and public spaces 45,000 18,000 spaces

Explanation / Answer

$72,000/48000 = $1.5 per bed

$64000/32000 = $2 per bathrooms

$45000/18000 = $2.5 per spaces/rooms

$1.50*1,600 = $2,400 (1600 beds @ $1.50 per bed)

$2*900 = $1,800 (900 bathrooms @ $2 per bathroom)

$2.50*1,200=$3,000 (1,200 public spaces @ $2.50 per space)

$2.50*900=$2,250 (900 rooms @ $2.50 per room)

Total = $9,450

The total overhead divided by the number of rooms, including public spaces, is $10.50 per room ($9,450/900). Not including public spaces is $7.17 ($6,450/900) per room.

Related Questions

Navigate

• Browse (All)
• Browse T
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.