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 $8.20 per guest check-in, $23.00 per room cleaning, and $5.00 per served meal (not including food). Janelle Campbell visited the hotel for a 5-night stay. Janelle had 8 meals in the hotel during the visit. Determine the total activity-based cost for Campbell's visit during the month. Round your answer to the nearest cent. $

Answer 1

$163.20

Step-by-step explanation:

Calculation to Determine the total activity-based cost for Campbell's visit during the month

Guest check in $8.20

($1 guest*$8.20 per guest check-in)

Room cleaning $115.00

(5-night *$23.00 per room cleaning)

Served meals $40.00

(8 meals*$5.00 per served meal)

Total activity-based cost $163.20

Therefore the total activity-based cost for Campbell's visit during the month will be $163.20