MANAGERIAL ACCOUNTING (LL) W/ CENGAGENO
15th Edition
ISBN: 9781337955409
Author: WARREN
Publisher: CENGAGE L
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Textbook Question
Chapter 1, Problem 3PB
A partial list of The Grand Hotel’s costs follows:
- a. Advertising in local newspaper
- b. Bedding (sheets, blankets, pillows)
- c. Bellhop wages
- d. Champagne for special guest packages
- e. Coffee and tea for rooms
- f. Cost of customer surveys
- g.
Depreciation of the hotel - h. Desk clerk wages
- i. Guest long-distance telephone costs
- j. Kitchen employee wages
- k. Laundering towels and sheets
- l. Lobby furniture
- m. Maid wages
- n. Mini-bar supplies
- o. New carpeting
- p. Painting lobby
- q. Pay-per-view movie rental costs (in rooms)
- r. Salary of the hotel manager
- s. Soaps and shampoos for rooms
- t. Training for hotel restaurant servers
- u. Utility costs for hotel
- v. Valet parking services
- w. Wages of convention setup employees
Instructions
- 1. What would be The Grand Hotel’s most logical definition for the final cost object?
- 2. Identify whether each of the costs is to be classified as direct or indirect. For purposes of classifying each cost as direct or indirect, use the hotel guest as the cost object.
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A partial list of The Grand Hotel’s costs follows:a. Cost to mail a customer surveyb. Wages of convention setup employeesc. Pay-per-view movie rental costs (in rooms)d. Cost of foode. Cost of room mini-bar suppliesf. Training for hotel restaurant serversg. Cost to paint lobbyh. Cost of laundering towels and beddingi. Champagne for guestsj. Salary of the hotel managerk. Depreciation of the hotell. Cost of valet parkingm. Wages of bellhopsn. Cost to replace lobby furnitureo. Cost of advertising in local newspaperp. Wages of desk clerksq. Wages of maidsr. Cost of new carpetings. Guest room telephone costs for longdistance callst. Cost of soaps and shampoos for roomsu. Utility costv. Wages of kitchen employeesw. General maintenance suppliesInstructions1. What would be The Grand Hotel’s most logical definition for the final cost object?Explain.2. Identify whether each of the costs is to be classified as direct or indirect. For purposes of classifying each cost as direct or indirect, use the…
The Grand Hotel uses activity-based costing to determine the cost of servicing customers. There are three activity pools: guest check-in, room cleaning, and meal service. The activity rates associated with each activity pool are $9 per guest check-in, $15 per room cleaning, and $5 per served meal (not including food). Nikita Johnson visited the hotel for a three-night stay. Nikita had three meals in the hotel during her visit.
Determine the total activity-based cost for Nikita’s visit.
Classify each cost listed below as either product costs or period costs for the purpose of preparing the financial statements for the bank.
Cost Product Cost/Period Cost
1. Depreciation on chairs and tables in the factory lunchroom
2. The wages of the receptionist in the administrative offices
3. Cost of leasing the corporate jet used by the company's executives
4. The cost of renting rooms at a Florida resort for the annual sales conference
5. The cost of packaging the company's product
Chapter 1 Solutions
MANAGERIAL ACCOUNTING (LL) W/ CENGAGENO
Ch. 1 - Prob. 1DQCh. 1 - Prob. 2DQCh. 1 - What manufacturing cost term is used to describe...Ch. 1 - Distinguish between prime costs and conversion...Ch. 1 - What is the difference between a product cost and...Ch. 1 - Name the three inventory accounts for a...Ch. 1 - In what order should the three inventories of a...Ch. 1 - What are the three categories of manufacturing...Ch. 1 - How do the manufacturing costs incurred during a...Ch. 1 - How does the Cost of goods sold section of the...
Ch. 1 - Management process Three phases of the management...Ch. 1 - Prob. 2BECh. 1 - Prime and conversion costs Identify the following...Ch. 1 - Product and period costs Identify the following...Ch. 1 - Cost of goods sold, cost of goods manufactured...Ch. 1 - Jakes Cabins is a small motel chain with locations...Ch. 1 - Indicate whether each of the following costs of an...Ch. 1 - Indicate whether the following costs of Procter ...Ch. 1 - Prob. 3ECh. 1 - For apparel manufacturer Abercrombie Fitch, Inc....Ch. 1 - From the choices presented in parentheses, choose...Ch. 1 - Prob. 6ECh. 1 - Classifying costs In a service company A partial...Ch. 1 - Classifying costs The following is a manufacturing...Ch. 1 - Financial statements of a manufacturing firm The...Ch. 1 - Manufacturing company balance sheet Partial...Ch. 1 - Cost of direct materials used in production for a...Ch. 1 - Prob. 12ECh. 1 - Cost of goods manufactured for a manufacturing...Ch. 1 - Income statement for a manufacturing company Two...Ch. 1 - Statement of cost of goods manufactured for a...Ch. 1 - Cost of goods sold, profit margin, and net income...Ch. 1 - Cost flow relationships The following information...Ch. 1 - The following is a list of costs that were...Ch. 1 - The following is a list of costs incurred by...Ch. 1 - A partial list of Foothills Medical Centers costs...Ch. 1 - Manufacturing income statement, statement of cost...Ch. 1 - Statement of cost of goods manufactured and income...Ch. 1 - Prob. 1PBCh. 1 - The following is a list of costs incurred by...Ch. 1 - A partial list of The Grand Hotels costs follows:...Ch. 1 - Several items are omitted from the income...Ch. 1 - Statement of cost of goods manufactured and income...Ch. 1 - Comfort Plus, Inc., has a hotel with 300 rooms in...Ch. 1 - Prob. 2MADCh. 1 - Comparing occupancy for two hotels Sunrise Suites...Ch. 1 - Prob. 4MADCh. 1 - Prob. 5MADCh. 1 - Prob. 1TIFCh. 1 - Communication Todd Johnson is the Vice President...Ch. 1 - For each of the following managers, describe how...Ch. 1 - The following situations describe scenarios that...Ch. 1 - Geek Chic Company provides computer repair...Ch. 1 - Which of the following items would not be...Ch. 1 - Prob. 2CMACh. 1 - A firm has 100,000 in direct materials costs,...Ch. 1 - In practice, items such as wood screws and glue...
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