Cost allocation to accommodation and spa services: Develop, describe, and explain an appropriate cost allocation methodology that can accurately assign departmental costs to accommodation and spa services. Your approach should include:$$

A diagram that shows the overall process in which costs from the five departments should be allocated to accommodation and spa services.$$

Cost objects$$

$-$ Accommodation services $$

$-$ Spa services $$

Identification of relevant cost pools.$$

$$

Recommendation and justification about what cost drivers should be used to allocate each cost pool.$$ Exhibit $6$: Red Lodge Pricing $2023$

Accommodation Rates

$($Per night, per room, based on double occupancy. Additional guests may incur extra fees.$)$

$($Prices in AUD, inclusive of GST$)$

Spa Services

$($Available to both hotel guests and the general public. Bookings required.$)$Price $($AUD $)$ Exhibit $2$: Red Sands Lodge Departments

$\backslash$begin$\{$tabular$\}\{|$l$|$l$|$l$|\}$

$\backslash$hline Department & Description & Main types of expenses $\backslash \backslash$

$\backslash$hline Guest services & Helps guests with reservations, spa appointments, reception, and concierge enquiries. & Reception staff $\backslash \backslash$

$\backslash$hline Cleaning and housekeeping & Provides cleaning services to reception, rooms, and spa facilities & Cleaning staff, cleaning supplies, depreciation on cleaning. equipment $\backslash \backslash$

$\backslash$hline Laundry & Provides laundry services for rooms and spa facilities $($i$.$e$.$ towels, linens$)$ & Laundry staff, laundry supplies and consumables, depreciation on laundry equipment $\backslash \backslash$

$\backslash$hline Building services & Maintains the physical infrastructure of hotel building including administration, reception, laundry, accommodation, and spa facilities & Rent, repairs and maintenance staff, depreciation, building utilities $\backslash \backslash$

$\backslash$hline Hotel administration & Manages hotel operations and human resources, oversees other departments, accounting and finance and hotel marketing. & Administrative and managerial staff, software subscriptions, depreciation on office equipment $\backslash \backslash$

$\backslash$hline

$\backslash$end$\{$tabular$\}$