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Housekeeping staff budget 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 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 on duty to staff the restaurant for breakfast and lunch (eight hours), regardless of occupancy. However, for every 60 occupied rooms, an additional person is brought in to work in the restaurant for breakfast and lunch (eight hours). The restaurant staff is paid $12 per hour. Prepare two columns, labeled as weekday and weekend day. A. Determine the number of rooms occupied for an average weekday and weekend day. B. Determine the housekeeping staff budget for an average weekday and weekend day. C. Determine the restaurant staff budget for an average weekday and weekend day. D. Determine the total staff budget for an average weekday and weekend day.

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Financial And Managerial Accounting

15th Edition
WARREN + 1 other
Publisher: Cengage Learning,
ISBN: 9781337902663

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Chapter
Section
BuyFindarrow_forward

Financial And Managerial Accounting

15th Edition
WARREN + 1 other
Publisher: Cengage Learning,
ISBN: 9781337902663
Chapter 22, Problem 4MAD
Textbook Problem
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Housekeeping staff budget

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 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 on duty to staff the restaurant for breakfast and lunch (eight hours), regardless of occupancy. However, for every 60 occupied rooms, an additional person is brought in to work in the restaurant for breakfast and lunch (eight hours). The restaurant staff is paid $12 per hour. Prepare two columns, labeled as weekday and weekend day.

  1. A. Determine the number of rooms occupied for an average weekday and weekend day.
  2. B. Determine the housekeeping staff budget for an average weekday and weekend day.
  3. C. Determine the restaurant staff budget for an average weekday and weekend day.
  4. D. Determine the total staff budget for an average weekday and weekend day.

A.

To determine

Ascertain the number of rooms occupied for an average weekday and weekend day.

Explanation of Solution

Budgeting:

Budgeting is a process to prepare the financial statement by the manager to estimate the organization’s future actions. It is also helpful to satisfy the everyday activities.

The following table shows the number of rooms occupied.

DetailsWeekd...

B.

To determine

Prepare the housekeeping staff budget for an average weekday and weekend day.

C.

To determine

Calculate the restaurant staff budget for an average weekday and weekend day.

4.

To determine

Compute the total staff budget for an average weekday and weekend day.

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Chapter 22 Solutions

Financial And Managerial Accounting
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