Question

The flowering desert hotel uses activity-based costing to determine the cost of servicing customers. There are three activity pools: guest check-in ($8. 50 per guest visit), room cleaning ($21. 00 per day), and room service ($3. 00 per order, not including food). Martin hemphill visited the hotel for a two-week stay. He used room service 10 times during his stay. Determine the total activity-based cost for hemphill's visit.

Answer 1

Calculation of total activity-based cost for Hemphill's visit:

It is given that there are three activity pools: guest check-in ($8. 50 per guest visit), room cleaning ($21. 00 per day), and room service ($3. 00 per order, not including food). Martin Hemphill visited the hotel for a two-week stay. He used room service 10 times during his stay. The cost of each activity can be calculated as follows:

Guest Check: $8.50

Room cleaning: ($21*14 days) = $294

Room service: ($3*10 times) =$30

Total Cost = (8.5+294+30) = $332.50

Hence the total activity-based cost for Hemphill's visit is $332.50