5.% Conditional Forma Check Cell Formatting Explonofory ... Hyperlink Elinke Menge Center Agnment Number Shyles X H COMMON HOURLY This should be costs FOR, not Costs per el controller developed the following data for use in activity-based costing Complete the calculations to help you answer the que Standard Costs for Presidential Sum of Cost cost per cost costs for Junior Costs for Manufacturing overhead Amount Cost driver Junior Suite Standard Guest Guest Room Suite Drivers soite Presidential Suite driver Check Depreciation $1,200,000 square feet 50,000 20,000 10,000 110.000 Maintenance $1,800,000 Direct labor hours 10.000 141,000 148,500 471,500 Purchasing 2.500 1,500 9,000 13,000 Inspection of $220,000 purchase orders of $830,000 inspections Units $490.000 minutacture d 1.000 850 3,500 5.350 Indirect 150 110 25 25 materials 1.000 850 3.500 5,250 110 25 of Supervision $1,700,000 inspections Units Supplies $190.000 manufacture Total $8.550,000 not different activities together as if they are the divity-based costing to locate the cost of overhead per unit and in total to each guest room type. Show all supporting calculations in the space provided to the right late the cost of one Presidential Sorte using activity based costine Current selling price is the company covering its true cost of production of the Presidential Sute? Bretly discuss me that the Presidential Suite has the same profit margo at the standard restroom. What should its selling price bet Show all Calodation dos Balance Sheet Cash Flow Cost and Investing Budget and Forecast Type here to search H M N Overhead Coats Cost Choice Hotels Sales Production, and Cost Internation Room Type Standard Guest Junior Suite Presidential Suite Room Volume 150 110 25 Price $140,000 $240,000 $1,050,000 Unit costs Direct $30,000 $92,000 $310,000 materials Direct labor $54,000 $85,000 $640,000 Type Depreciation Maintenance Purchasing Inspection ore or $3,200,000 $1,800,000 $100,000 $850,000 Indirect materials $490,000 Manufacturing overhead $30,000 $30,000 $30,000 Supervision $1,700,000 $190,000 Total unit cost $114,000 $207,000 $980,000 Supplies Total manufacturing overhead cost $8,550,000 Unit gross $26,000 of est profit $33,000 $70,000 Note: Manufacturing overhead costs are fred. They do not vary with the volume of manufacturing activity 1,200 1,300 5.540 Direct labor hours Rate per hour $45.00 $65.38 $107.74 Total Overhead of total Overhead Answer Questions 1 and 2 Below: 1 Total manufacturing overhead costs Rate per unit of Rooms Standard Junior Presidential ht of totalt of overhead per ABC All of labor per la Labor Hours Total labor Hours Total Cost of labor Units 2 Standard Junior Presidential Totals Slanic Sheet Bludget and Forecast Cash Flow Cost and Investing Clipboard Font Alignment Number W68 R B D E F G 1 Choice Hotels has contracted with a mid-size furniture manufacturer for the production of guestroom furniture 2 for three models of guest rooms: the standard guest room, Junior Suite, and Presidential Suite. 3 4 The Standard Guest Room comes with basic furniture, bathroom plan, and amenities. It sells for $140,000 to 5 franchise hotels 6 9 The Junior Suite model is larger and includes an enhanced furniture selection, upgraded bathroom fixtures, more comfortable bedding. The guest room is considered an upgrade from the standard guestroom model. The Junior 7 Suite sells for $240,000 to franchise hotels. 8 The Presidential Suite model is a custom-made guest room with floors and walls constructed from specialty wood. The drapes are made from the traditional flax-based canvass. It has the look and feel of a room in the White House, e, with modern comforts and security. The Presidential Suite sells for $1,050,000 to franchise hotels. Workers who build the Presidential Suite are specialized craftsmen. They earn twice the hourly rate of those working on the Standard Guest Room and Junior Suite models. The labor rate is fully burdened to include benefits. Most of Choice Hotels' guest room sales come from the Standard Guest Room and the Junior Suite, but sales of the Presidential Suite model have been growing. The company's sales, production, and cost information for last year is provided to the right. 10 11 12 13 14 15 16 Questions: Questions: 1. The cost-allocation system Choice Hotels has been using allocates over 90 percent of overhead costs to the 3 Standard Guest Room and the Junior Suite, because over 90 percent of the models produced were one of these two models. How much overhead was allocated to each of the three models last year? Discuss why this might not be an accurate way to assign overhead costs to products. 2. Choice Hotels' production manager proposes allocating overhead by direct labor hours instead, since the different models require different amounts of labor. How much overhead would be allocated to each guest 3 room (per unit and in total) using this method? Show all supporting calculations. 25 1 2 4 26 27 5.% Conditional Forma Check Cell Formatting Explonofory ... Hyperlink Elinke Menge Center Agnment Number Shyles X H COMMON HOURLY This should be costs FOR, not Costs per el controller developed the following data for use in activity-based costing Complete the calculations to help you answer the que Standard Costs for Presidential Sum of Cost cost per cost costs for Junior Costs for Manufacturing overhead Amount Cost driver Junior Suite Standard Guest Guest Room Suite Drivers soite Presidential Suite driver Check Depreciation $1,200,000 square feet 50,000 20,000 10,000 110.000 Maintenance $1,800,000 Direct labor hours 10.000 141,000 148,500 471,500 Purchasing 2.500 1,500 9,000 13,000 Inspection of $220,000 purchase orders of $830,000 inspections Units $490.000 minutacture d 1.000 850 3,500 5.350 Indirect 150 110 25 25 materials 1.000 850 3.500 5,250 110 25 of Supervision $1,700,000 inspections Units Supplies $190.000 manufacture Total $8.550,000 not different activities together as if they are the divity-based costing to locate the cost of overhead per unit and in total to each guest room type. Show all supporting calculations in the space provided to the right late the cost of one Presidential Sorte using activity based costine Current selling price is the company covering its true cost of production of the Presidential Sute? Bretly discuss me that the Presidential Suite has the same profit margo at the standard restroom. What should its selling price bet Show all Calodation dos Balance Sheet Cash Flow Cost and Investing Budget and Forecast Type here to search H M N Overhead Coats Cost Choice Hotels Sales Production, and Cost Internation Room Type Standard Guest Junior Suite Presidential Suite Room Volume 150 110 25 Price $140,000 $240,000 $1,050,000 Unit costs Direct $30,000 $92,000 $310,000 materials Direct labor $54,000 $85,000 $640,000 Type Depreciation Maintenance Purchasing Inspection ore or $3,200,000 $1,800,000 $100,000 $850,000 Indirect materials $490,000 Manufacturing overhead $30,000 $30,000 $30,000 Supervision $1,700,000 $190,000 Total unit cost $114,000 $207,000 $980,000 Supplies Total manufacturing overhead cost $8,550,000 Unit gross $26,000 of est profit $33,000 $70,000 Note: Manufacturing overhead costs are fred. They do not vary with the volume of manufacturing activity 1,200 1,300 5.540 Direct labor hours Rate per hour $45.00 $65.38 $107.74 Total Overhead of total Overhead Answer Questions 1 and 2 Below: 1 Total manufacturing overhead costs Rate per unit of Rooms Standard Junior Presidential ht of totalt of overhead per ABC All of labor per la Labor Hours Total labor Hours Total Cost of labor Units 2 Standard Junior Presidential Totals Slanic Sheet Bludget and Forecast Cash Flow Cost and Investing Clipboard Font Alignment Number W68 R B D E F G 1 Choice Hotels has contracted with a mid-size furniture manufacturer for the production of guestroom furniture 2 for three models of guest rooms: the standard guest room, Junior Suite, and Presidential Suite. 3 4 The Standard Guest Room comes with basic furniture, bathroom plan, and amenities. It sells for $140,000 to 5 franchise hotels 6 9 The Junior Suite model is larger and includes an enhanced furniture selection, upgraded bathroom fixtures, more comfortable bedding. The guest room is considered an upgrade from the standard guestroom model. The Junior 7 Suite sells for $240,000 to franchise hotels. 8 The Presidential Suite model is a custom-made guest room with floors and walls constructed from specialty wood. The drapes are made from the traditional flax-based canvass. It has the look and feel of a room in the White House, e, with modern comforts and security. The Presidential Suite sells for $1,050,000 to franchise hotels. Workers who build the Presidential Suite are specialized craftsmen. They earn twice the hourly rate of those working on the Standard Guest Room and Junior Suite models. The labor rate is fully burdened to include benefits. Most of Choice Hotels' guest room sales come from the Standard Guest Room and the Junior Suite, but sales of the Presidential Suite model have been growing. The company's sales, production, and cost information for last year is provided to the right. 10 11 12 13 14 15 16 Questions: Questions: 1. The cost-allocation system Choice Hotels has been using allocates over 90 percent of overhead costs to the 3 Standard Guest Room and the Junior Suite, because over 90 percent of the models produced were one of these two models. How much overhead was allocated to each of the three models last year? Discuss why this might not be an accurate way to assign overhead costs to products. 2. Choice Hotels' production manager proposes allocating overhead by direct labor hours instead, since the different models require different amounts of labor. How much overhead would be allocated to each guest 3 room (per unit and in total) using this method? Show all supporting calculations. 25 1 2 4 26 27