How do you calculate Cost by allocated on the basis of total # rooms occupied us
ID: 2586033 • Letter: H
Question
How do you calculate Cost by allocated on the basis of total # rooms occupied using the information below.
Total Direct Costs for CCOR
Facilities Cost - Utilities
Other Facilities Costs
Total Other Facilities
General & Administrative
General Administrative
Total General & Administrative
Equipment & Repair
Total Hotel Operations
Total Operating Costs for CCOR
Room type # Rooms Occupied Kitchenware Replacement/Repair Complementory Toiletries Complementory Coffee & Tea Total Ocean Front 14400 $ 28,800.00 $ 43,200.00 $ 72,000.00 Ocean View 67500 $ 135,000.00 $ 202,500.00 $ 337,500.00 Pool Side 3888 $ 7,776.00 $ 11,664.00 $ 19,440.00 One Bedroom Suite 2880 $ 5,760.00 $ 8,640.00 $ 14,400.00 $ 28,800.00 Two Bedroom Suite 2880 $ 8,640.00 $ 11,520.00 $ 23,040.00 $ 43,200.00
Total Direct Costs for CCOR
$ 14,400.00 $ 191,736.00 $ 294,804.00 $ 500,940.00 Annual Resource Costs TotalFacilities Cost - Utilities
$ 210,000.00Other Facilities Costs
Depreciation $ 800,000.00 Tax $ 500,000.00 Interest $ 600,000.00Total Other Facilities
$ 1,900,000.00General & Administrative
Accounting $ 165,000.00General Administrative
$ 155,000.00 Purchasing & HR $ 88,000.00Total General & Administrative
$ 408,000.00 Hotel Operations Wages $ 1,500,000.00 Supplies $ 180,000.00Equipment & Repair
$ 240,000.00Total Hotel Operations
$ 1,920,000.00Total Operating Costs for CCOR
$ 4,438,000.00Explanation / Answer
Direct cost shall be accrued directly to the rooms for which it is incurred.
Indirect cost can be proportioned either by charges of room charged or
number of rooms. Since charges of room is not given, we shall proportion
it on the basis of number of rooms.
Total Indirect Cost:
Amount in $
Facilities Cost - Utilities
210000
Total other facilities
1900000
General & Administrative
408000
Total Hotel Operations
1920000
Total Cost
4438000
- (A)
Total Number of Rooms:
Ocean Front
14400
Ocean View
67500
Pool Side
3888
One Bedroom Suite
2880
Two Bedroom Suite
2880
Total Rooms
91548
- (B)
Cost per Room
48.47730152
(A/B)
Total cost allotted
Room Type
No. of Rooms
Indirect cost
Direct cost
Total Cost
=No. of room * 48.4773
Ocean Front
14400
698073.14
72000.00
770073.14
Ocean View
67500
3272217.85
337500.00
3609717.85
Pool Side
3888
188479.75
19440.00
207919.75
One Bedroom Suite
2880
139614.63
28800.00
168414.63
Two Bedroom Suite
2880
139614.63
43200.00
182814.63
Total
91548
4438000.00
500940.00
4938940.00
Direct cost shall be accrued directly to the rooms for which it is incurred.
Indirect cost can be proportioned either by charges of room charged or
number of rooms. Since charges of room is not given, we shall proportion
it on the basis of number of rooms.
Total Indirect Cost:
Amount in $
Facilities Cost - Utilities
210000
Total other facilities
1900000
General & Administrative
408000
Total Hotel Operations
1920000
Total Cost
4438000
- (A)
Total Number of Rooms:
Ocean Front
14400
Ocean View
67500
Pool Side
3888
One Bedroom Suite
2880
Two Bedroom Suite
2880
Total Rooms
91548
- (B)
Cost per Room
48.47730152
(A/B)
Total cost allotted
Room Type
No. of Rooms
Indirect cost
Direct cost
Total Cost
=No. of room * 48.4773
Ocean Front
14400
698073.14
72000.00
770073.14
Ocean View
67500
3272217.85
337500.00
3609717.85
Pool Side
3888
188479.75
19440.00
207919.75
One Bedroom Suite
2880
139614.63
28800.00
168414.63
Two Bedroom Suite
2880
139614.63
43200.00
182814.63
Total
91548
4438000.00
500940.00
4938940.00
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