(a) A hotel is being run in a Hill station with 200 single rooms. The hotel...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
(a) A hotel is being run in a Hill station with 200 single rooms. The hotel offers concessional rates during six off-season months in a year. During this period, half of the full room rent is charged. The management's profit margin is targeted at 20% of the room rent. The following are the cost estimates and other details for the year ending 31st March, 2019: (i) Occupancy during the season is 80% while in the off-season it is 40%. (ii) Total investment in the hotel is 300 lakhs of which 80% relates to Buildings and the balance to Furniture and other Equipment. (iii) Room attendants are paid 15 per room per day on the basis of occupancy of rooms in a month. (iv) Expenses: . . . Staff salary (excluding that of room attendants) Repairs to Buildings Laundry Charges Interior Charges 78,00,000 3,00,000 1,40,000 *2,50,000 Miscellaneous Expenses 2,00,200 (v) Annual Depreciation is to be provided on Buildings @ 5% and 15% on Furniture and other Equipments on straight line method. (vi) Monthly lighting charges are 110, except in four months in winter when it is 30 per room and this cost is on the basis of full occupancy for a month. You are required to workout the room rent chargeable per day both during the season and the off-season months using the foregoing information. (Assume a month to be of 30 days and winter season to be considered as part of off-season). (b) XYZ a manufacturing firm, has revealed following information for September,2019: 30th September 1st September (²) Raw Materials Works-in-progress 2,92,000 5,00,000 The firm incurred following expenses for a targeted production of 1,00,000 units during the month : 2,42,000 2,00,000 Consumable Stores and spares of factory Research and development cost for process improvements Quality control cost Packing cost (secondary) per unit of goods sold Lease rent of production asset Administrative Expenses (General) 3,50,000 2,50,000 2,00,000 2 2,00,000 2,24,000 4,13,000 Selling and distribution Expenses Finished goods (opening) Nil Finished goods (closing) 5000 units Defective output which is 4% of targeted production, realizes 61 per unit. Closing stock is valued at cost of production (excluding administrative expenses) Cost of goods sold, excluding administrative expenses amounts to 78,26,000. Direct employees cost is 1/2 of the cost of material consumed. Selling price of the output is * 110 per unit. You are required to: (i) Calculate the value of material purchased (ii) Prepare cost sheet showing the profit earned by the firm. (10 Marks) (a) A hotel is being run in a Hill station with 200 single rooms. The hotel offers concessional rates during six off-season months in a year. During this period, half of the full room rent is charged. The management's profit margin is targeted at 20% of the room rent. The following are the cost estimates and other details for the year ending 31st March, 2019: (i) Occupancy during the season is 80% while in the off-season it is 40%. (ii) Total investment in the hotel is 300 lakhs of which 80% relates to Buildings and the balance to Furniture and other Equipment. (iii) Room attendants are paid 15 per room per day on the basis of occupancy of rooms in a month. (iv) Expenses: . . . Staff salary (excluding that of room attendants) Repairs to Buildings Laundry Charges Interior Charges 78,00,000 3,00,000 1,40,000 *2,50,000 Miscellaneous Expenses 2,00,200 (v) Annual Depreciation is to be provided on Buildings @ 5% and 15% on Furniture and other Equipments on straight line method. (vi) Monthly lighting charges are 110, except in four months in winter when it is 30 per room and this cost is on the basis of full occupancy for a month. You are required to workout the room rent chargeable per day both during the season and the off-season months using the foregoing information. (Assume a month to be of 30 days and winter season to be considered as part of off-season). (b) XYZ a manufacturing firm, has revealed following information for September,2019: 30th September 1st September (²) Raw Materials Works-in-progress 2,92,000 5,00,000 The firm incurred following expenses for a targeted production of 1,00,000 units during the month : 2,42,000 2,00,000 Consumable Stores and spares of factory Research and development cost for process improvements Quality control cost Packing cost (secondary) per unit of goods sold Lease rent of production asset Administrative Expenses (General) 3,50,000 2,50,000 2,00,000 2 2,00,000 2,24,000 4,13,000 Selling and distribution Expenses Finished goods (opening) Nil Finished goods (closing) 5000 units Defective output which is 4% of targeted production, realizes 61 per unit. Closing stock is valued at cost of production (excluding administrative expenses) Cost of goods sold, excluding administrative expenses amounts to 78,26,000. Direct employees cost is 1/2 of the cost of material consumed. Selling price of the output is * 110 per unit. You are required to: (i) Calculate the value of material purchased (ii) Prepare cost sheet showing the profit earned by the firm. (10 Marks)
Expert Answer:
Related Book For
Posted Date:
Students also viewed these accounting questions
-
The reaction 2A(g) A2(g) is being run in each of the following containers. The reaction is found to be second-order with respect to A. a. Write the rate law for the reaction. b. Which reaction...
-
The banker's algorithm is being run in a system with m resource classes and n processes. In the limit of large m and n, the number of operations that must be performed to check a state for safety is...
-
A small hotel has 50 rooms that rent for $105 per night and cost $45 to clean and prepare each night they are used. All rentals are by reservation and there is a 10 percent chance that an individual...
-
Greenback Sporting, a retailer of outdoor wear and sporting equipment, is investigating an opportunity to purchase Active Lifestyle Inc. An acquisition is expected to lower overhead costs, improve...
-
When is inflation an important issue in conducting case analysis? Why bother?
-
Suppose the governments goal is to reduce the unemployment rate. Some legislators propose that the government should give a subsidy s to any firm that hires a worker. Others argue that it would be...
-
Name and explain two allocation rules and two allocation keys. Why are allocation rules and keys important to lower-level management? If you were a site manager in a chemical company, with a single...
-
Kallus Corp. is an industry leader in the manufacture of toys. Each year, its design staff comes up with new ideas that are a great success. As a result, Kalluss sales and profits consistently exceed...
-
Question 7 of 9 View Policies < > Current Attempt in Progress Sandhill Company has a balance in its Accounts Payable control account of $8,180 on January 1, 2022. The subsidiary ledger contains three...
-
On January 1, 2016, Theta Corp. acquired a four unit apartment building at as cost of $1,475,000. Of this total, it is estimated that the land on which the building is situated is worth $250,000 and...
-
Two random samples of size 100 are drawn from two populations P and P2 and their means X and X. If = 10, 0 = 2 and 2 = 8,02 = 1, find (a) E[X - X]. (b) (X - X). (c) The probability that the...
-
Jennifer has $100,000 in personal taxable income. Her filing status is married filing jointly. Based on the marginal tax rates from Module 1 handout, how much tax does Jennifer owe to the government?
-
Delta Corporation manufactures two products, Flow and Glow. They use a standard cost system based on direct labor hours. Assume that the quantity of units purchased for materials is equal to the...
-
Milo Manufacturing produces products Kappa and Lambda from a joint process. Total joint costs are $160,000. The sales value at split- off was $169,200 for 5,200 units of Kappa and $63,280 for 7,800...
-
Locate a *scholarly article regarding Police Liability (or a closely related topic on police officers / policing) . A *scholarly article will come from a published Journal, and it contains original...
-
Evaluate the line integral on the corresponding trajectory. If possible, apply the Cauchy- Goursat theorem or some of its consequences z-5z+i dz; C:|z|= 3 z-1+2i C counter clockwise
-
In what internal control activity are different individuals are responsible for related activities? Physical controls Human resource controls Segregation of duties Policies and procedures
-
For the following exercises, find the inverse of the function and graph both the function and its inverse. f(x) = 4 x 2 , x 0
-
On the basis of G for each of the following reactions, decide whether the reaction is spontaneous or nonspontaneous as written. Or, if you expect an equilibrium mixture with significant amounts of...
-
Consider the reaction of all pairs of the following compounds in water solution: Sr(OH)2, AgNO3, H3PO4, KNO3, CuSO4. a. Which pair (or pairs) forms one insoluble compound and one soluble compound...
-
Solid KSCN was added to a 2.00 M Fe3+ solution so that it was also initially 2.00 M SCN. These ions then reacted to give the complex ion Fe(SCN)2+, whose formation constant was 9.0 102. What is the...
-
A system, consisting of \(2 \mathrm{~mol}\) of \(\mathrm{N}_{2}, 5 \mathrm{~mol}\) of \(\mathrm{H}_{2}\) and \(2 \mathrm{~mol}\) of \(\mathrm{NH}_{3}\) initially, is undergoing the following...
-
A thermodynamic system (a) Is a definite quantity of matter (b) Is surrounded by a boundary (c) Can exchange energy with its surroundings (d) All of these.
-
The study of thermodynamics enables us to understand (a) Whether the transformation of energy is feasible or not (b) To what extent the transformation will take place (c) In which direction the...
Study smarter with the SolutionInn App