Activity-Based Costing for a Service Business Sterling Hotel uses activity-based costing to determine the cost...
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Accounting
Activity-Based Costing for a Service Business Sterling 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 $8.10 per guest check-in, $19.00 per room cleaning, and $4.00 per served meal (not including food). Tara Stone visited the hotel for a 7-night stay. Tara had 7 meals in the hotel during the visit. Determine the total activity-based cost for Stone's visit during the month. Round your answer to the nearest cent. a. Determine the activity rate for each activity. If required, round the rate to the nearest dollar. b. Use the activity rates in (a) to determine the total and per-unit activity costs associated with each product. Round the unit amounts to the nearest cent. Activity Rates and Product Costs using Activity-Based Costing Lonsdale Inc. manufactures entry and dining room lighting fixtures. Five activities are used in manufacturing the fixtures. These activities and their associated budgeted activity costs and activity bases are as follows: Corporate records were obtained to estimate the amount of activity to be used by the two products. The estimated activity-base usage quantities and units produced follow: a. Determine the activity rate for each activity. If required, round the rate to the nearest dollar



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