Question

terling 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 $8.50 per guest check-in, $19.00 per room cleaning, and $4.00 per served meal (not including food). Brian Stone visited the hotel for a 5-night stay. Brian had 6 meals in the hotel during the visit.

Determine the total activity-based cost for Stone's visit during the month. Round your answer to the nearest cent.
$

Answer 1

Answer: In Given question it is not cleary provided whether given info, is 5 days stay in a month or not. So as per that 2 scenarios I have Calculated
Computation of TOTAL ACTIVITY BASED COST - For 5 Days Stay (If whole month)
Particulars	Amount (in$)
Guest check-in (1 Guest * $8.50)	$8.50
Room Cleaning ($19 per room * 5 stays)	$95
Meals ($4 per meal *6 meals)	$24
TOTAL COST	$127.50
(OR)
Computation of TOTAL ACTIVITY BASED COST - For month Stay
Particulars	Amount (in$)
Guest check-in (1 Guest * $8.50)	$8.50
Room Cleaning ($19 per room * 30stays)	$570
Meals ($4 per meal *36 meals)	$144
TOTAL MONTHLY COST	$722.50