Help me with this homework question: Sleep-EZ Suites Inc., operates a downtown h

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Help me with this homework question:

Sleep-EZ Suites Inc., operates a downtown hotel property that has 600 rooms. On average, 90% of Sleep-EZ 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 fulltime 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.

Explanation / Answer

Sleep-EZ Suites Inc.

Direct Labor Budget

Weekday Weekend Day Room occupancy 600 600 Occupied percent 90% 60% Rooms occupied 540 360 Housekeeping Number of minutes to clean each room 40 mins 40 mins Toal minutes 21,600 14,400 Total hours 360 240 Labor rate per hour $ 12 $ 12 Housekeeping daily labor budget $ 4,320 $ 2,880 Restaurant staff Base restaurant staff 12 12 Incremental 20 room blocks 27 18 Total staff 39 30 Hours per day 8 8 Total hours 312 240 Labor rate per hour $ 10 $ 10 Restaurant staff daily labor budget $ 3,120 $ 2,400 Total daily labor budget $ 7,440 $ 5,280

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