Sleep-EZ Suites Inc., operates a downtown hotel property that has 600 rooms. On

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 $10 per hour. The restaurant has 12 full-time 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 $8 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.

Sleep-EZ Suites Inc. Direct Labor Cost Budget For a Weekday or a Weekend Day Weekday Weekend Day Room occupancy Room capacity Occupied percent x% x% Rooms occupied Housekeeping Number of minutes to clean a room x x Total minutes Total hours Labor rate per hour x$ x$ Housekeeping daily labor budget $ $ Restaurant staff Base restaurant staff Incremental 20 room blocks Total staff Hours per day x x Total hours Labor rate per hour x$ x$ Restaurant staff daily labor budget $ $ Total daily labor budget $ $

Explanation / Answer

SLEEP-EZ SUITES INC. Direct Labor Cost Budget For a Weekday or a Weekend Day Weekday Weekend Day Room occupancy                   600                 600 Room capacity                   600                 600 Occupied percent 90% 60% Rooms occupied                   540                 360 Housekeeping Number of minutes to clean a room               40.00             40.00 Total minutes       21,600.00     14,400.00 Total hours             360.00           240.00 Labor rate per hour               10.00             10.00 Housekeeping daily labor budget         3,600.00       2,400.00 Restaurant staff Base restaurant staff               12.00             12.00 Incremental 20 room blocks               27.00             18.00 Total staff               39.00             30.00 Hours per day                 8.00                8.00 Total hours             312.00           240.00 Labor rate per hour                 8.00                8.00 Restaurant staff daily labor budget         2,496.00       1,920.00 Total daily labor budget         6,096.00       4,320.00

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