Question: Sterling Hotel uses activity based costing to determine the cost of
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 $ 8.00 per guest check-in, $ 25.00 per room cleaning, and $ 4.00 per served meal (not including food). Ginny Campbell visited the hotel for a 3-night stay. Campbell had three meals in the hotel during her visit. Determine the total activity-based cost for Campbell’s visit.
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