8.Activity-Based Costing for a Service Business Sterling Hotel uses activity-bas

Question

8.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 $8.70 per guest check-in, $22.00 per room cleaning, and $4.00 per served meal (not including food). Tara Lawson visited the hotel for a 7-night stay. Lawson had 7 meals in the hotel during her visit. Determine the total monthly activity-based cost for Lawson during the month. Round your answer to the nearest cent.

Explanation / Answer

Guest check-in 8.7 Room cleaning 154 =22*7 Meal service 28 =4*7 Total activity-based cost 190.7

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