Activity-Based Costing for a Service Business Sterling Hotel uses activity-based

Question

Activity-Based Costing for a Service Business Sterling Hotel uses activity-based costing to determine the cost of servicing customers. There are three activity pools: guest check-in, room cleaning, and meal service. The activity rates associated with each activity pool are $8 per guest check-in, $25 per room cleaning, and $4 per served meal (not including food). Ginny Campbell visited the hotel for a three-night stay. Campbell had three meals in the hotel during her visit. Determine the total activity-based cost for Campbell's visit. $

Explanation / Answer

Total activity-based cost for Campbell's visit = 8+(25*3)+(3*4)= $95

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