Luxury Hotel's new airport location is trying to determine how much it costs per room per...

 

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Luxury Hotel's new airport location is trying to determine how much it costs per room per night. Currently, it calculates the cost per room by dividing total costs by total number of occupied rooms. Total annual costs are $12 million. The hotel has 400 rooms, and each room is rented approximately 300 nights per year for a total of 120,000 rooms rented per year The airport hotel location had divided its guests into three main categories: Business Travelers, vacation travelers, and conference guests. As well, the hotel has divided its costs into a number of different categories, as indicated in the following chart: Cost Category Total Cost Room Cleaning costs and Elevator Costs $4,000,000 Parking costs Front Desk and Maintenance costs Guest Type Business Vacation Convention $3,000,000 Parking spots used $5,000,000 Guests per room T 1 Activity Driver Number of guests per room Rooms per year Parking Yes 30,000 Hours spent in hotel 1x9-9 hours 3 x 9=27 hours 1 x 24 24 hours No 70,000 No 20,000 For example and clarification, each room rented by a vacation travel does not require parking, is usually occupied by 3 people, and each person spends an average of 9 hours in the hotel. Since there are 3 people per room, and each person spends 9 hours per day at the hotel, then it is the equivalent of 27 hours spent in the hotel per 24-hours by one person. On average there are 70 rooms per night rented by vacation travelers per year. 3 1 hours spent by all room guest in the hotel per 24 hr period Required A. Based on their current formula, what is the average cost per room per night. B. Based on Activity Based Costing, what is the cost per room per night for each type of guest. Luxury Hotel's new airport location is trying to determine how much it costs per room per night. Currently, it calculates the cost per room by dividing total costs by total number of occupied rooms. Total annual costs are $12 million. The hotel has 400 rooms, and each room is rented approximately 300 nights per year for a total of 120,000 rooms rented per year The airport hotel location had divided its guests into three main categories: Business Travelers, vacation travelers, and conference guests. As well, the hotel has divided its costs into a number of different categories, as indicated in the following chart: Cost Category Total Cost Room Cleaning costs and Elevator Costs $4,000,000 Parking costs Front Desk and Maintenance costs Guest Type Business Vacation Convention $3,000,000 Parking spots used $5,000,000 Guests per room T 1 Activity Driver Number of guests per room Rooms per year Parking Yes 30,000 Hours spent in hotel 1x9-9 hours 3 x 9=27 hours 1 x 24 24 hours No 70,000 No 20,000 For example and clarification, each room rented by a vacation travel does not require parking, is usually occupied by 3 people, and each person spends an average of 9 hours in the hotel. Since there are 3 people per room, and each person spends 9 hours per day at the hotel, then it is the equivalent of 27 hours spent in the hotel per 24-hours by one person. On average there are 70 rooms per night rented by vacation travelers per year. 3 1 hours spent by all room guest in the hotel per 24 hr period Required A. Based on their current formula, what is the average cost per room per night. B. Based on Activity Based Costing, what is the cost per room per night for each type of guest.

Answer rating: 100% (QA)

A To calculate the average cost per room per night using the current formula we need to divide the total annual costs by the total number of rooms ren... View the full answer