Ambassador Suites Inc. operates a downtown hotel property that has 300 rooms. On average, 80% of Ambassador Suites’ rooms are occupied on weekdays and 40% are occupied during the weekend. The manager has asked you to develop a direct labor budget for the housekeeping and restaurant staff for weekdays and weekends. You have determined that the housekeeping staff requires 30 minutes to clean each occupied room. The housekeeping staff is paid $14 per hour. The housekeeping labor cost is fully variable to the number of occupied rooms. The restaurant has six full-time staff (eight-hour day) on duty, regardless of occupancy. However, for every 60 occupied rooms, an additional person is brought in to work in the restaurant for the eight-hour day. The restaurant staff is paid $12 per hour. Determine the estimated housekeeping, restaurant, and total direct labor cost for an average weekday and average weekend day. Format the budget in two columns, labeled as weekday and weekend day. Enter percentages as whole numbers. Ambassador Suites Inc.Direct Labor Cost BudgetFor a Weekday or a Weekend Day Weekday Weekend Day Room occupancy Room capacity fill in the blank 1 fill in the blank 2 Occupied percent xfill in the blank 3% xfill in the blank 4% Rooms occupied fill in the blank 5 fill in the blank 6 Housekeeping Number of minutes to clean a room xfill in the blank 7 xfill in the blank 8 Total minutes fill in the blank 9 fill in the blank 10 Total hours fill in the blank 11 fill in the blank 12 Labor rate per hour x $fill in the blank 13 x $fill in the blank 14 Housekeeping daily labor budget $fill in the blank 15 $fill in the blank 16 Restaurant staff Base restaurant staff fill in the blank 17 fill in the blank 18 Incremental 60 room blocks +fill in the blank 19 +fill in the blank 20 Total staff fill in the blank 21 fill in the blank 22 Hours per day xfill in the blank 23 xfill in the blank 24 Total hours fill in the blank 25 fill in the blank 26 Labor rate per hour x $fill in the blank 27 x $fill in the blank 28 Restaurant staff daily labor budget $fill in the blank 29 $fill in the blank 30 Total daily labor budget $fill in the blank 31 $fill in the blank 32

Ambassador Suites Inc. operates a downtown hotel property that has 300 rooms. On average, 80% of Ambassador Suites’ rooms are occupied on weekdays and 40% are occupied during the weekend. The manager has asked you to develop a direct labor budget for the housekeeping and restaurant staff for weekdays and weekends. You have determined that the housekeeping staff requires 30 minutes to clean each occupied room. The housekeeping staff is paid $14 per hour. The housekeeping labor cost is fully variable to the number of occupied rooms. The restaurant has six full-time staff (eight-hour day) on duty, regardless of occupancy. However, for every 60 occupied rooms, an additional person is brought in to work in the restaurant for the eight-hour day. The restaurant staff is paid $12 per hour. Determine the estimated housekeeping, restaurant, and total direct labor cost for an average weekday and average weekend day. Format the budget in two columns, labeled as weekday and weekend day. Enter percentages as whole numbers. Ambassador Suites Inc.Direct Labor Cost BudgetFor a Weekday or a Weekend Day Weekday Weekend Day Room occupancy Room capacity fill in the blank 1 fill in the blank 2 Occupied percent xfill in the blank 3% xfill in the blank 4% Rooms occupied fill in the blank 5 fill in the blank 6 Housekeeping Number of minutes to clean a room xfill in the blank 7 xfill in the blank 8 Total minutes fill in the blank 9 fill in the blank 10 Total hours fill in the blank 11 fill in the blank 12 Labor rate per hour x $fill in the blank 13 x $fill in the blank 14 Housekeeping daily labor budget $fill in the blank 15 $fill in the blank 16 Restaurant staff Base restaurant staff fill in the blank 17 fill in the blank 18 Incremental 60 room blocks +fill in the blank 19 +fill in the blank 20 Total staff fill in the blank 21 fill in the blank 22 Hours per day xfill in the blank 23 xfill in the blank 24 Total hours fill in the blank 25 fill in the blank 26 Labor rate per hour x $fill in the blank 27 x $fill in the blank 28 Restaurant staff daily labor budget $fill in the blank 29 $fill in the blank 30 Total daily labor budget $fill in the blank 31 $fill in the blank 32

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter8: Budgeting

Section: Chapter Questions

Problem 4MAD

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Determine the estimated housekeeping, restaurant, and total direct labor cost for an average weekday and average weekend day. Format the budget in two columns, labeled as weekday and weekend day. Enter percentages as whole numbers.

Ambassador Suites Inc.Direct Labor Cost BudgetFor a Weekday or a Weekend Day

	Weekday	Weekend Day
Room occupancy
Room capacity	fill in the blank 1	fill in the blank 2
Occupied percent	xfill in the blank 3%	xfill in the blank 4%
Rooms occupied	fill in the blank 5	fill in the blank 6
Housekeeping
Number of minutes to clean a room	xfill in the blank 7	xfill in the blank 8
Total minutes	fill in the blank 9	fill in the blank 10
Total hours	fill in the blank 11	fill in the blank 12
Labor rate per hour	x $fill in the blank 13	x $fill in the blank 14
Housekeeping daily labor budget	$fill in the blank 15	$fill in the blank 16
Restaurant staff
Base restaurant staff	fill in the blank 17	fill in the blank 18
Incremental 60 room blocks	+fill in the blank 19	+fill in the blank 20
Total staff	fill in the blank 21	fill in the blank 22
Hours per day	xfill in the blank 23	xfill in the blank 24
Total hours	fill in the blank 25	fill in the blank 26
Labor rate per hour	x $fill in the blank 27	x $fill in the blank 28
Restaurant staff daily labor budget	$fill in the blank 29	$fill in the blank 30
Total daily labor budget	$fill in the blank 31	$fill in the blank 32

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