Crystal Coast Ocean Resort Case Solution
hann
crystal_coast_ocean_resort.docCrystal Coast Ocean Resort
The Crystal Coast Ocean Resort (CCOR) is a large, family-owned resort located on one of the finest beaches in North Carolina. The Resort is locally called the “Ramada Inn: Crystal Coast Ocean Resort”, because it has a contractual relationship with Ramada Inn, Inc which requires Ramada to provide reservation services and certain marketing services. In turn CCOR pays an annual fee to Ramada and displays the Ramada Inn sign. Ramada has the right, under contract, to require CCOR to meet Ramada standards for resort services, cleanliness, etc, and regularly visits CCOR to make sure that these standards are being met. CCOR’s main building has a T-configuration, where the top of the T is road-side and the bottom of the T is at the beach. This allows all rooms to have at least a partial view of the beach. There are five types of rooms for guests, ocean front (actually facing the ocean, at the bottom of the T), ocean view (along the sides of the T), pool side (first floor, with patios having direct access to the pool), and one and two bedroom suites that are located at the top of the T. These rooms are distributed as follows.
|
|
No. of Rooms |
|
Ocean front |
50 |
|
Ocean view |
250 |
|
Pool Side |
18 |
|
One Bedroom Suite |
16 |
|
Two Bedroom Suite |
16 |
|
|
350 |
The season for CCOR is year-round because of the mild winters, though the occupancy rates vary from 100% during the summer months to less than 50% in the winter months. The average annual occupancy rate for each type of rooms is 80%, 75%, 60%, 50% and 50% for the ocean front, ocean view, pool side, one room and two room suites, respectively. Because the Resort is popular with families, the average number of persons per room is greater than for some other motels or hotels. The average number of occupants is three for the ocean front, ocean view, and pool side rooms, four for the one bedroom suite, and 6 for the two bedroom suite. The suite are also somewhat larger, 500 square feet for the one bedroom suite, and 900 square feet for the two bedroom suite, while all other room are 300 square feet.
CCOR does not have some of the amenities of competing resorts, but instead competes on value pricing and reliable service. It does not offer special services such as room service, exercise room, restaurant, or lounge but it sets high standards for room cleanliness and for the appearance and cleanliness of the pool and grounds. Also, CCOR offer a free breakfast and a free afternoon snack.
Because of high demand in summer months, CCOR sets relatively high market prices during this season, ranging from $125 to $350 per room depending on room type and day of week. Prices are lower in the fall and spring, and substantially lower in the winter. In order to have better information about price setting and profitability analysis for each of the five room types: ocean front, ocean view, pool side, one bedroom and two bedroom suites, CCOR has gathered additional information to help it determine the cost for each occupied room. Les Broom, the accounting manager, assembled the following data. The data includes information on the four annual resource costs taken directly from CCOR’s accounting reports, as well as activity and cost driver information developed by Les.
Annual Resource Costs at CCOR
Facilities Cost - Utilities210,000$
Other Facilities Costs
Depreciation800,000
Tax500,000
Interest600,000
Total1,900,000$
General and Administrative
Accounting165,000
General Administration155,000
Purchasing and HR88,000
Total408,000$
Hotel Operations
Wages1,500,000
Supplies180,000
Equipment and repair240,000
Total 1,920,000$
The following is a list of the nine activities at CCOR identified by Les, as well as information he developed to assign resource costs to these activities. Les performed a careful analysis and determined the approximate percentage of each type of resource costs that could be allocated to each of the nine activities.
ActivitiesUtilitiesOther FacilitiesGen and AdmOperations
Housekeeping5%5%20%
Laundry10%10%10%
Grounds and Pool40%20%10%
Registration15% 20%
Breakfast room10%15%10%
Administration5%20%0%
Security5%10%10%
Room repair and maintenance10%20%20%
Utilities100%0%0%0%
Total100%100%100%100%
Resources
The following activity-consumption cost drivers are used to assign activity costs to cost objects:
|
Activities |
Cost Driver |
|
|
Housekeeping |
square feet |
|
|
Laundry |
number of occupants |
|
|
Grounds and Pool |
number of rooms |
|
|
Registration |
number of occupied rooms |
|
|
Breakfast room |
number of occupants |
|
|
Administration |
number of occupied rooms |
|
|
Security |
number of rooms |
|
|
Room repair and maintenance |
square feet |
|
|
Utilities |
square feet |
|
The cost drivers are interpreted as follows. Housekeeping costs are allocated to the room type based on the number of square feet in the room. Laundry is allocated to the room type based on the number of occupants in that room type for the year. Grounds and pool expenses are allocated an equal amount to each room. Registration is allocated on the basis of the number of occupied rooms, that is, the number of nights a room type is occupied). The other activities are allocated using the cost drivers in a similar way..
In addition to the cost of the nine activities, CCOR has direct costs for each type of room, as shown below. These direct costs are incurred each night a room is occupied. These costs are called “external units” in the Oros software.
External Units (Direct Costs)OceanfrontOceanviewPool Side1 Room Suite2 Room Suite
Kitchenware replacement/repair2.00$ 3.00$
Complimentary toiletries2.00$ 2.00$ 2.00$ 3.00$ 4.00$
Complimentary coffee and tea3.00$ 3.00$ 3.00$ 5.00$ 8.00$
Required
1. Download and install the Oros Quick ABC program (WinZip file). The Oros Quick software is in self-extracting zipped file. Create a directory on your computer and download the file to that directory. Double-click on the file and it will load in that directly. Then double click on the Setup executable file to install the software (you can safely uninstall it later).
2. Download the Short Oros tutorial.
3. Work through the Short Oros tutorial (you can skip the sections on attributes and on the balanced scorecard; these are explained in the full tutorial).
4. Create a folder labeled “Ocean Resort.” You will save to this folder the several files of the Oros ABC model you create when developing the Oros model.
5. Use the information in the case above and in the tutorial to complete an ABC costing application using Oros; determine the ABC-based unit costs for each occupied room for each room type. An occupied room is defined as a room that is occupied for that night. .
6. Comment briefly on what management insights are created with the ABC analysis of profitability by room type.
Blocher,Stout,Cokins,Chen: Cost Management, 4e 1 ©The McGraw-Hill Companies, Inc. 2008
_1222233294.xls
Data
| Resources | Per Year | |||||
| Facilities Cost - Utilities | $ 210,000 | |||||
| Other Facilities Costs | ||||||
| Depreciation | 800,000 | |||||
| Tax | 500,000 | |||||
| Interest | 600,000 | |||||
| Total | $ 1,900,000 | |||||
| General and Administrative | ||||||
| Accounting | 165,000 | |||||
| General Administration | 155,000 | |||||
| Purchasing and HR | 88,000 | |||||
| Total | $ 408,000 | |||||
| Hotel Operations | ||||||
| Wages | 1,500,000 | |||||
| Supplies | 180,000 | |||||
| Equipment and repair | 240,000 | |||||
| Total | $ 1,920,000 | |||||
| Resources to Activities | ||||||
| Resources | Activity-consumption | |||||
| Activities | Utilities | Other Facilities | Gen and Adm | Operations | Cost Driver | |
| Housekeeping | 5% | 5% | 20% | square feet | ||
| Laundry | 10% | 10% | 10% | per person night | ||
| Grounds and Pool | 40% | 20% | 10% | per room | ||
| Registration | 15% | 20% | per room night | |||
| Breakfast room | 10% | 15% | 10% | per person night | ||
| Administration | 5% | 20% | 0% | per room night | ||
| Security | 5% | 10% | 10% | per room | ||
| Room repair and maintenance | 10% | 20% | 20% | square feet | ||
| Utilities | 100% | 0% | 0% | 0% | square feet | |
| Total | 100% | 100% | 100% | 100% | ||
| Activities to Cost Objects | ||||||
| Cost Objects | ||||||
| Activities | Oceanfront | Oceanview | Pool Side | 1 Room Suite | 2 Room Suite | Driver |
| Housekeeping | square feet | |||||
| Laundry | per person night | |||||
| Grounds and Pool | per room | |||||
| Registration | per room night | |||||
| Breakfast room | per person night | |||||
| Administration | per room night | |||||
| Security | per room | |||||
| Room Repair and maintenance | square feet | |||||
| Utilities | square feet | |||||
| External Units (Direct Costs) | Oceanfront | Oceanview | Pool Side | 1 Room Suite | 2 Room Suite | |
| Kitchenware replacement/repair | $ 2.00 | $ 3.00 | ||||
| Complimentary toiletries | $ 2.00 | $ 2.00 | $ 2.00 | $ 3.00 | $ 4.00 | |
| Complimentary coffee and tea | $ 3.00 | $ 3.00 | $ 3.00 | $ 5.00 | $ 8.00 | |
| Average | Average | Room size | ||||
| No. of Rooms | Occupancy% | Persons/Rm | (sq ft) | |||
| Oceanfront | 50 | 75% | 3 | 300 | ||
| Oceanview | 250 | 75% | 3 | 300 | ||
| Pool Side | 18 | 75% | 3 | 300 | ||
| One Bedroom Suite | 16 | 75% | 4 | 500 | ||
| Two Bedroom Suite | 16 | 75% | 6 | 900 | ||
| 350 |
Crystal Coast Ocean Resort
| Crystal Coast Ocean Resort | ||||||||
| Ocean front | Ocean view | Pool Side | 1 Room Suite | 2 Room Suite | Total | |||
| Number of Rooms | 50 | 250 | 18 | 16 | 16 | 350 | ||
| Average Occupancy | 80% | 75% | 60% | 50% | 50% | 75% | ||
| Total Room nights | 14,600 | 68,438 | 3,942 | 2,920 | 2,920 | 92,820 | ||
| Average person per room night | 3 | 3 | 3 | 4 | 6 | |||
| Total Persons per room type | 43,800 | 205,313 | 11,826 | 11,680 | 17,520 | 290,139 | ||
| Room size (square feet) | 300 | 300 | 300 | 500 | 900 | |||
| Total square feet for room type | 15,000 | 75,000 | 5,400 | 8,000 | 14,400 | 117,800 | ||
| First Stage Allocation: Allocate Resources to Activities | Total | |||||||
| Utilities | Facilities | Admin | Operations | Assigned | ||||
| $ 210,000 | $ 1,900,000 | $ 408,000 | $ 1,920,000 | $ 4,438,000 | ||||
| First: Resource Consumption Drivers | ||||||||
| Utilities | Facilities | Admin | Operations | |||||
| ACTIVITIES | ||||||||
| Housekeeping | 5% | 5% | 20% | |||||
| Laundry | 10% | 10% | 10% | |||||
| Grounds and Pool | 40% | 20% | 10% | |||||
| Registration | 15% | 0% | 20% | |||||
| Breakfast room | 10% | 15% | 10% | |||||
| Administration | 5% | 20% | 0% | |||||
| Security | 5% | 10% | 10% | |||||
| Room repair and maintenance | 10% | 20% | 20% | |||||
| Utilities | 100% | 0% | 0% | 0% | ||||
| Total | 100% | 100% | 100% | 100% | ||||
| Second: Allocate Resources to Activities Using Resource Consumption Drivers | ||||||||
| Utilities | Facilities | Admin | Operations | Total | Activity-consumption | |||
| ACTIVITIES | Cost Driver | |||||||
| Housekeeping | $ 95,000 | $ 20,400 | $ 384,000 | $ 499,400 | square feet | |||
| Laundry | 190,000 | 40,800 | 192,000 | 422,800 | per occupant | |||
| Grounds and Pool | 760,000 | 81,600 | 192,000 | 1,033,600 | per room | |||
| Registration | 285,000 | - 0 | 384,000 | 669,000 | per room night | |||
| Breakfast room | 190,000 | 61,200 | 192,000 | 443,200 | per occupant | |||
| Administration | 95,000 | 81,600 | - 0 | 176,600 | per room night | |||
| Security | 95,000 | 40,800 | 192,000 | 327,800 | per room | |||
| Room repair and maintenance | 190,000 | 81,600 | 384,000 | 655,600 | square feet | should this be determined by occupancy? | ||
| Utilities | $ 210,000 | - 0 | - 0 | - 0 | 210,000 | square feet | as above | |
| $ 210,000 | $ 1,900,000 | $ 408,000 | $ 1,920,000 | $ 4,438,000 | ||||
| Second Stage Allocation: Allocate Activity Costs to Room Type | ||||||||
| Cost Driver Percentage of Total for each Room Type | Total | |||||||
| Total Occupants | 15.10% | 70.76% | 4.08% | 4.03% | 6.04% | 100.00% | ||
| Room size, all rooms (sq ft) | 12.73% | 63.67% | 4.58% | 6.79% | 12.22% | 100.00% | ||
| Total Room nights | 15.73% | 73.73% | 4.25% | 3.15% | 3.15% | 100.00% | ||
| Total number of rooms | 14.29% | 71.43% | 5.14% | 4.57% | 4.57% | 100.00% | ||
| Second: Allocate Activity Costs to Room Type | ||||||||
| ACTIVITIES | Oceanfront | Oceanview | Pool Side | 1 Room Suite | 2 Room Suite | Total | check… | |
| Housekeeping | 63,591 | 317,954 | 22,893 | 33,915 | 61,047 | $ 499,400 | 499,400 | |
| Laundry | 63,827 | 299,189 | 17,233 | 17,021 | 25,531 | 422,800 | 422,800 | |
| Grounds and Pool | 147,657 | 738,286 | 53,157 | 47,250 | 47,250 | 1,033,600 | 1,033,600 | |
| Registration | 105,230 | 493,266 | 28,412 | 21,046 | 21,046 | 669,000 | 669,000 | |
| Breakfast room | 66,907 | 313,624 | 18,065 | 17,842 | 26,763 | 443,200 | 443,200 | |
| Administration | 27,778 | 130,210 | 7,500 | 5,556 | 5,556 | 176,600 | 176,600 | |
| Security | 46,829 | 234,143 | 16,858 | 14,985 | 14,985 | 327,800 | 327,800 | |
| Room repair and maintenance | 83,480 | 417,402 | 30,053 | 44,523 | 80,141 | 655,600 | 655,600 | |
| Utilities | 26,740 | 133,701 | 9,626 | 14,261 | 25,671 | 210,000 | 210,000 | |
| TOTAL | $ 632,039 | $ 3,077,775 | $ 203,797 | $ 216,399 | $ 307,990 | $ 4,438,000 | 4,438,000 | |
| Cost per occupied room | $ 43.29 | $ 44.97 | $ 51.70 | $ 74.11 | $ 105.48 | |||
| Plus: Direct Costs per room night | ||||||||
| Kitchenware replacement/repair | $ 2.00 | $ 3.00 | ||||||
| Complimentary toiletries | $ 2.00 | $ 2.00 | $ 2.00 | $ 3.00 | $ 4.00 | |||
| Complimentary coffee and tea | $ 3.00 | $ 3.00 | $ 3.00 | $ 5.00 | $ 8.00 | |||
| Direct Costs Total | ||||||||
| Kitchenware replacement/repair | $ - 0 | $ - 0 | $ - 0 | $ 29,200 | $ 43,800 | $ 73,000 | ||
| Complimentary toiletries | $ 29,200 | $ 29,200 | $ 29,200 | $ 43,800 | $ 58,400 | $ 189,800 | ||
| Complimentary coffee and tea | $ 43,800 | $ 43,800 | $ 43,800 | $ 73,000 | $ 116,800 | $ 321,200 | ||
| Total Direct costs | $ 73,000 | $ 73,000 | $ 73,000 | $ 146,000 | $ 219,000 | $ 584,000 | ||
| Total Cost for Each Product | $ 705,039 | $ 3,150,775 | $ 276,797 | $ 362,399 | $ 526,990 | $ 5,022,000 | ||
| Total Cost per occupied room | $ 48.290 | $ 46.039 | $ 70.217 | $ 124.109 | $ 180.476 |
_1222443978.xls
Data
| Resources | Per Year | |||||
| Facilities Cost - Utilities | $ 210,000 | |||||
| Other Facilities Costs | ||||||
| Depreciation | 800,000 | |||||
| Tax | 500,000 | |||||
| Interest | 600,000 | |||||
| Total | $ 1,900,000 | |||||
| General and Administrative | ||||||
| Accounting | 165,000 | |||||
| General Administration | 155,000 | |||||
| Purchasing and HR | 88,000 | |||||
| Total | $ 408,000 | |||||
| Hotel Operations | ||||||
| Wages | 1,500,000 | |||||
| Supplies | 180,000 | |||||
| Equipment and repair | 240,000 | |||||
| Total | $ 1,920,000 | |||||
| Resources to Activities | ||||||
| Resources | Activity-consumption | |||||
| Activities | Utilities | Other Facilities | Gen and Adm | Operations | Cost Driver | |
| Housekeeping | 5% | 5% | 20% | square feet | ||
| Laundry | 10% | 10% | 10% | per person night | ||
| Grounds and Pool | 40% | 20% | 10% | per room | ||
| Registration | 15% | 20% | per room night | |||
| Breakfast room | 10% | 15% | 10% | per person night | ||
| Administration | 5% | 20% | 0% | per room night | ||
| Security | 5% | 10% | 10% | per room | ||
| Room repair and maintenance | 10% | 20% | 20% | square feet | ||
| Utilities | 100% | 0% | 0% | 0% | square feet | |
| Total | 100% | 100% | 100% | 100% | ||
| Activities to Cost Objects | ||||||
| Cost Objects | ||||||
| Activities | Oceanfront | Oceanview | Pool Side | 1 Room Suite | 2 Room Suite | Driver |
| Housekeeping | square feet | |||||
| Laundry | per person night | |||||
| Grounds and Pool | per room | |||||
| Registration | per room night | |||||
| Breakfast room | per person night | |||||
| Administration | per room night | |||||
| Security | per room | |||||
| Room Repair and maintenance | square feet | |||||
| Utilities | square feet | |||||
| External Units (Direct Costs) | Oceanfront | Oceanview | Pool Side | 1 Room Suite | 2 Room Suite | |
| Kitchenware replacement/repair | $ 2.00 | $ 3.00 | ||||
| Complimentary toiletries | $ 2.00 | $ 2.00 | $ 2.00 | $ 3.00 | $ 4.00 | |
| Complimentary coffee and tea | $ 3.00 | $ 3.00 | $ 3.00 | $ 5.00 | $ 8.00 | |
| Average | Average | Room size | ||||
| No. of Rooms | Occupancy% | Persons/Rm | (sq ft) | |||
| Oceanfront | 50 | 75% | 3 | 300 | ||
| Oceanview | 250 | 75% | 3 | 300 | ||
| Pool Side | 18 | 75% | 3 | 300 | ||
| One Bedroom Suite | 16 | 75% | 4 | 500 | ||
| Two Bedroom Suite | 16 | 75% | 6 | 900 | ||
| 350 |
Crystal Coast Ocean Resort
| Crystal Coast Ocean Resort | ||||||||
| Ocean front | Ocean view | Pool Side | 1 Room Suite | 2 Room Suite | Total | |||
| Number of Rooms | 50 | 250 | 18 | 16 | 16 | 350 | ||
| Average Occupancy | 80% | 75% | 60% | 50% | 50% | 75% | ||
| Total Room nights | 14,600 | 68,438 | 3,942 | 2,920 | 2,920 | 92,820 | ||
| Average person per room night | 3 | 3 | 3 | 4 | 6 | |||
| Total Persons per room type | 43,800 | 205,313 | 11,826 | 11,680 | 17,520 | 290,139 | ||
| Room size (square feet) | 300 | 300 | 300 | 500 | 900 | |||
| Total square feet for room type | 15,000 | 75,000 | 5,400 | 8,000 | 14,400 | 117,800 | ||
| First Stage Allocation: Allocate Resources to Activities | Total | |||||||
| Utilities | Facilities | Admin | Operations | Assigned | ||||
| $ 210,000 | $ 1,900,000 | $ 408,000 | $ 1,920,000 | $ 4,438,000 | ||||
| First: Resource Consumption Drivers | ||||||||
| Utilities | Facilities | Admin | Operations | |||||
| ACTIVITIES | ||||||||
| Housekeeping | 5% | 5% | 20% | |||||
| Laundry | 10% | 10% | 10% | |||||
| Grounds and Pool | 40% | 20% | 10% | |||||
| Registration | 15% | 0% | 20% | |||||
| Breakfast room | 10% | 15% | 10% | |||||
| Administration | 5% | 20% | 0% | |||||
| Security | 5% | 10% | 10% | |||||
| Room repair and maintenance | 10% | 20% | 20% | |||||
| Utilities | 100% | 0% | 0% | 0% | ||||
| Total | 100% | 100% | 100% | 100% | ||||
| Second: Allocate Resources to Activities Using Resource Consumption Drivers | ||||||||
| Utilities | Facilities | Admin | Operations | Total | Activity-consumption | |||
| ACTIVITIES | Cost Driver | |||||||
| Housekeeping | $ 95,000 | $ 20,400 | $ 384,000 | $ 499,400 | square feet | |||
| Laundry | 190,000 | 40,800 | 192,000 | 422,800 | per occupant | |||
| Grounds and Pool | 760,000 | 81,600 | 192,000 | 1,033,600 | per room | |||
| Registration | 285,000 | - 0 | 384,000 | 669,000 | per room night | |||
| Breakfast room | 190,000 | 61,200 | 192,000 | 443,200 | per occupant | |||
| Administration | 95,000 | 81,600 | - 0 | 176,600 | per room night | |||
| Security | 95,000 | 40,800 | 192,000 | 327,800 | per room | |||
| Room repair and maintenance | 190,000 | 81,600 | 384,000 | 655,600 | square feet | should this be determined by occupancy? | ||
| Utilities | $ 210,000 | - 0 | - 0 | - 0 | 210,000 | square feet | as above | |
| $ 210,000 | $ 1,900,000 | $ 408,000 | $ 1,920,000 | $ 4,438,000 | ||||
| Second Stage Allocation: Allocate Activity Costs to Room Type | ||||||||
| Cost Driver Percentage of Total for each Room Type | Total | |||||||
| Total Occupants | 15.10% | 70.76% | 4.08% | 4.03% | 6.04% | 100.00% | ||
| Room size, all rooms (sq ft) | 12.73% | 63.67% | 4.58% | 6.79% | 12.22% | 100.00% | ||
| Total Room nights | 15.73% | 73.73% | 4.25% | 3.15% | 3.15% | 100.00% | ||
| Total number of rooms | 14.29% | 71.43% | 5.14% | 4.57% | 4.57% | 100.00% | ||
| Second: Allocate Activity Costs to Room Type | ||||||||
| ACTIVITIES | Oceanfront | Oceanview | Pool Side | 1 Room Suite | 2 Room Suite | Total | check… | |
| Housekeeping | 63,591 | 317,954 | 22,893 | 33,915 | 61,047 | $ 499,400 | 499,400 | |
| Laundry | 63,827 | 299,189 | 17,233 | 17,021 | 25,531 | 422,800 | 422,800 | |
| Grounds and Pool | 147,657 | 738,286 | 53,157 | 47,250 | 47,250 | 1,033,600 | 1,033,600 | |
| Registration | 105,230 | 493,266 | 28,412 | 21,046 | 21,046 | 669,000 | 669,000 | |
| Breakfast room | 66,907 | 313,624 | 18,065 | 17,842 | 26,763 | 443,200 | 443,200 | |
| Administration | 27,778 | 130,210 | 7,500 | 5,556 | 5,556 | 176,600 | 176,600 | |
| Security | 46,829 | 234,143 | 16,858 | 14,985 | 14,985 | 327,800 | 327,800 | |
| Room repair and maintenance | 83,480 | 417,402 | 30,053 | 44,523 | 80,141 | 655,600 | 655,600 | |
| Utilities | 26,740 | 133,701 | 9,626 | 14,261 | 25,671 | 210,000 | 210,000 | |
| TOTAL | $ 632,039 | $ 3,077,775 | $ 203,797 | $ 216,399 | $ 307,990 | $ 4,438,000 | 4,438,000 | |
| Cost per occupied room | $ 43.29 | $ 44.97 | $ 51.70 | $ 74.11 | $ 105.48 | |||
| Plus: Direct Costs per room night | ||||||||
| Kitchenware replacement/repair | $ 2.00 | $ 3.00 | ||||||
| Complimentary toiletries | $ 2.00 | $ 2.00 | $ 2.00 | $ 3.00 | $ 4.00 | |||
| Complimentary coffee and tea | $ 3.00 | $ 3.00 | $ 3.00 | $ 5.00 | $ 8.00 | |||
| Direct Costs Total | ||||||||
| Kitchenware replacement/repair | $ - 0 | $ - 0 | $ - 0 | $ 29,200 | $ 43,800 | $ 73,000 | ||
| Complimentary toiletries | $ 29,200 | $ 29,200 | $ 29,200 | $ 43,800 | $ 58,400 | $ 189,800 | ||
| Complimentary coffee and tea | $ 43,800 | $ 43,800 | $ 43,800 | $ 73,000 | $ 116,800 | $ 321,200 | ||
| Total Direct costs | $ 73,000 | $ 73,000 | $ 73,000 | $ 146,000 | $ 219,000 | $ 584,000 | ||
| Total Cost for Each Product | $ 705,039 | $ 3,150,775 | $ 276,797 | $ 362,399 | $ 526,990 | $ 5,022,000 | ||
| Total Cost per occupied room | $ 48.290 | $ 46.039 | $ 70.217 | $ 124.109 | $ 180.476 |
_1222081831.xls
Data
| Resources | Per Year | |||||
| Facilities Cost - Utilities | $ 210,000 | |||||
| Other Facilities Costs | ||||||
| Depreciation | 800,000 | |||||
| Tax | 500,000 | |||||
| Interest | 600,000 | |||||
| Total | $ 1,900,000 | |||||
| General and Administrative | ||||||
| Accounting | 165,000 | |||||
| General Administration | 155,000 | |||||
| Purchasing and HR | 88,000 | |||||
| Total | $ 408,000 | |||||
| Hotel Operations | ||||||
| Wages | 1,500,000 | |||||
| Supplies | 180,000 | |||||
| Equipment and repair | 240,000 | |||||
| Total | $ 1,920,000 | |||||
| Resources to Activities | ||||||
| Resources | Activity-consumption | |||||
| Activities | Utilities | Other Facilities | Gen and Adm | Operations | Cost Driver | |
| Housekeeping | 5% | 5% | 20% | square feet | ||
| Laundry | 10% | 10% | 10% | per person night | ||
| Grounds and Pool | 40% | 20% | 10% | per room | ||
| Registration | 15% | 20% | per room night | |||
| Breakfast room | 10% | 15% | 10% | per person night | ||
| Administration | 5% | 20% | 0% | per room night | ||
| Security | 5% | 10% | 10% | per room | ||
| Room repair and maintenance | 10% | 20% | 20% | square feet | ||
| Utilities | 100% | 0% | 0% | 0% | square feet | |
| Total | 100% | 100% | 100% | 100% | ||
| Activities to Cost Objects | ||||||
| Cost Objects | ||||||
| Activities | Oceanfront | Oceanview | Pool Side | 1 Room Suite | 2 Room Suite | Driver |
| Housekeeping | square feet | |||||
| Laundry | per person night | |||||
| Grounds and Pool | per room | |||||
| Registration | per room night | |||||
| Breakfast room | per person night | |||||
| Administration | per room night | |||||
| Security | per room | |||||
| Room Repair and maintenance | square feet | |||||
| Utilities | square feet | |||||
| External Units (Direct Costs) | Oceanfront | Oceanview | Pool Side | 1 Room Suite | 2 Room Suite | |
| Kitchenware replacement/repair | $ 2.00 | $ 3.00 | ||||
| Complimentary toiletries | $ 2.00 | $ 2.00 | $ 2.00 | $ 3.00 | $ 4.00 | |
| Complimentary coffee and tea | $ 3.00 | $ 3.00 | $ 3.00 | $ 5.00 | $ 8.00 | |
| Average | Average | Room size | ||||
| No. of Rooms | Occupancy% | Persons/Rm | (sq ft) | |||
| Oceanfront | 50 | 75% | 3 | 300 | ||
| Oceanview | 250 | 75% | 3 | 300 | ||
| Pool Side | 18 | 75% | 3 | 300 | ||
| One Bedroom Suite | 16 | 75% | 4 | 500 | ||
| Two Bedroom Suite | 16 | 75% | 6 | 900 | ||
| 350 |
Crystal Coast Ocean Resort
| Crystal Coast Ocean Resort | ||||||||
| Ocean front | Ocean view | Pool Side | 1 Room Suite | 2 Room Suite | Total | |||
| Number of Rooms | 50 | 250 | 18 | 16 | 16 | 350 | ||
| Average Occupancy | 80% | 75% | 60% | 50% | 50% | 75% | ||
| Total Room nights | 14,600 | 68,438 | 3,942 | 2,920 | 2,920 | 92,820 | ||
| Average person per room night | 3 | 3 | 3 | 4 | 6 | |||
| Total Persons per room type | 43,800 | 205,313 | 11,826 | 11,680 | 17,520 | 290,139 | ||
| Room size (square feet) | 300 | 300 | 300 | 500 | 900 | |||
| Total square feet for room type | 15,000 | 75,000 | 5,400 | 8,000 | 14,400 | 117,800 | ||
| First Stage Allocation: Allocate Resources to Activities | Total | |||||||
| Utilities | Facilities | Admin | Operations | Assigned | ||||
| $ 210,000 | $ 1,900,000 | $ 408,000 | $ 1,920,000 | $ 4,438,000 | ||||
| First: Resource Consumption Drivers | ||||||||
| Utilities | Facilities | Admin | Operations | |||||
| ACTIVITIES | ||||||||
| Housekeeping | 5% | 5% | 20% | |||||
| Laundry | 10% | 10% | 10% | |||||
| Grounds and Pool | 40% | 20% | 10% | |||||
| Registration | 15% | 0% | 20% | |||||
| Breakfast room | 10% | 15% | 10% | |||||
| Administration | 5% | 20% | 0% | |||||
| Security | 5% | 10% | 10% | |||||
| Room repair and maintenance | 10% | 20% | 20% | |||||
| Utilities | 100% | 0% | 0% | 0% | ||||
| Total | 100% | 100% | 100% | 100% | ||||
| Second: Allocate Resources to Activities Using Resource Consumption Drivers | ||||||||
| Utilities | Facilities | Admin | Operations | Total | Activity-consumption | |||
| ACTIVITIES | Cost Driver | |||||||
| Housekeeping | $ 95,000 | $ 20,400 | $ 384,000 | $ 499,400 | square feet | |||
| Laundry | 190,000 | 40,800 | 192,000 | 422,800 | per occupant | |||
| Grounds and Pool | 760,000 | 81,600 | 192,000 | 1,033,600 | per room | |||
| Registration | 285,000 | - 0 | 384,000 | 669,000 | per room night | |||
| Breakfast room | 190,000 | 61,200 | 192,000 | 443,200 | per occupant | |||
| Administration | 95,000 | 81,600 | - 0 | 176,600 | per room night | |||
| Security | 95,000 | 40,800 | 192,000 | 327,800 | per room | |||
| Room repair and maintenance | 190,000 | 81,600 | 384,000 | 655,600 | square feet | should this be determined by occupancy? | ||
| Utilities | $ 210,000 | - 0 | - 0 | - 0 | 210,000 | square feet | as above | |
| $ 210,000 | $ 1,900,000 | $ 408,000 | $ 1,920,000 | $ 4,438,000 | ||||
| Second Stage Allocation: Allocate Activity Costs to Room Type | ||||||||
| Cost Driver Percentage of Total for each Room Type | Total | |||||||
| Total Occupants | 15.10% | 70.76% | 4.08% | 4.03% | 6.04% | 100.00% | ||
| Room size, all rooms (sq ft) | 12.73% | 63.67% | 4.58% | 6.79% | 12.22% | 100.00% | ||
| Total Room nights | 15.73% | 73.73% | 4.25% | 3.15% | 3.15% | 100.00% | ||
| Total number of rooms | 14.29% | 71.43% | 5.14% | 4.57% | 4.57% | 100.00% | ||
| Second: Allocate Activity Costs to Room Type | ||||||||
| ACTIVITIES | Oceanfront | Oceanview | Pool Side | 1 Room Suite | 2 Room Suite | Total | check… | |
| Housekeeping | 63,591 | 317,954 | 22,893 | 33,915 | 61,047 | $ 499,400 | 499,400 | |
| Laundry | 63,827 | 299,189 | 17,233 | 17,021 | 25,531 | 422,800 | 422,800 | |
| Grounds and Pool | 147,657 | 738,286 | 53,157 | 47,250 | 47,250 | 1,033,600 | 1,033,600 | |
| Registration | 105,230 | 493,266 | 28,412 | 21,046 | 21,046 | 669,000 | 669,000 | |
| Breakfast room | 66,907 | 313,624 | 18,065 | 17,842 | 26,763 | 443,200 | 443,200 | |
| Administration | 27,778 | 130,210 | 7,500 | 5,556 | 5,556 | 176,600 | 176,600 | |
| Security | 46,829 | 234,143 | 16,858 | 14,985 | 14,985 | 327,800 | 327,800 | |
| Room repair and maintenance | 83,480 | 417,402 | 30,053 | 44,523 | 80,141 | 655,600 | 655,600 | |
| Utilities | 26,740 | 133,701 | 9,626 | 14,261 | 25,671 | 210,000 | 210,000 | |
| TOTAL | $ 632,039 | $ 3,077,775 | $ 203,797 | $ 216,399 | $ 307,990 | $ 4,438,000 | 4,438,000 | |
| Cost per occupied room | $ 43.29 | $ 44.97 | $ 51.70 | $ 74.11 | $ 105.48 | |||
| Plus: Direct Costs per room night | ||||||||
| Kitchenware replacement/repair | $ 2.00 | $ 3.00 | ||||||
| Complimentary toiletries | $ 2.00 | $ 2.00 | $ 2.00 | $ 3.00 | $ 4.00 | |||
| Complimentary coffee and tea | $ 3.00 | $ 3.00 | $ 3.00 | $ 5.00 | $ 8.00 | |||
| Direct Costs Total | ||||||||
| Kitchenware replacement/repair | $ - 0 | $ - 0 | $ - 0 | $ 29,200 | $ 43,800 | $ 73,000 | ||
| Complimentary toiletries | $ 29,200 | $ 29,200 | $ 29,200 | $ 43,800 | $ 58,400 | $ 189,800 | ||
| Complimentary coffee and tea | $ 43,800 | $ 43,800 | $ 43,800 | $ 73,000 | $ 116,800 | $ 321,200 | ||
| Total Direct costs | $ 73,000 | $ 73,000 | $ 73,000 | $ 146,000 | $ 219,000 | $ 584,000 | ||
| Total Cost for Each Product | $ 705,039 | $ 3,150,775 | $ 276,797 | $ 362,399 | $ 526,990 | $ 5,022,000 | ||
| Total Cost per occupied room | $ 48.290 | $ 46.039 | $ 70.217 | $ 124.109 | $ 180.476 |
