Question
The service company, Excellent Maids, cleans hotel rooms at resorts on Hilton Head Island. Excellent has identified three activities involved in cleaning. Information on those activities for the month of May follow:
At the Calypso Resort, the company cleaned 900 rooms during March, 1,200 public spaces, changed 1,600 beds, and cleaned 900 bath rooms. Using ABC, how much total overhead is applied to a cleaning job?
Please show your work
|
Cost Pools |
Cost Drivers |
Estimated Overhead Cost |
Expected Use of Cost Drivers |
|
Changing bed linens |
Number of beds |
$72,000 |
48,000 beds |
|
Cleaning bath rooms |
Number of bath rooms |
64,000 |
32,000 bath rooms |
|
Other cleaning |
Number of hotel rooms and public spaces |
45,000 |
18,000 spaces |
