- 1 Marks
Question
The following information is available for the W Hotel for the latest thirty-day period:
- Number of rooms available per night: 40
- Percentage occupancy achieved: 65%
- Room servicing cost incurred: ₦3,900
The room servicing cost per occupied room-night last period, to the nearest Naira, was:
A. ₦3.25
B. ₦5.00
C. ₦6.50
D. ₦97.50
E. ₦150.00
Answer
B. ₦5.00
Explanation:
The answer is “B. ₦5.00” because the number of room-nights occupied is calculated as 40 rooms × 30 days × 65% = 780 room-nights. The room servicing cost per occupied room-night is ₦3,900 ÷ 780 = ₦5.00.
Run-down of reasoning:
- The total room servicing cost divided by the total number of occupied room-nights gives the cost per room-night. In this case, the total room servicing cost of ₦3,900 spread over 780 room-nights results in ₦5.00 per room-night.
- Tags: Occupancy Rates, Service Costing, Unit Cost
- Level: Level 1
- Topic: Costing Methods
- Series: NOV 2022
- Uploader: Theophilus