Activity based costing (ABC)

Assumption :

Operates 365 days a year

Cost type
Utilities
Other Facility cost
General Admin.
Hotel Operations
Control sum

Total cost
210,000.00
1,900,000.00
408,000.00
1,920,000.00
4,438,000.00

Resource driver
Square meter
Percent
Percent
Percent

Resourse driver volume

300
100%
100%
100%

Activities
House keeping
Laundry
Grounds and Pool
Registration
Breakfast room
Administration
Security
Room repair and maintenance
Utilities
total

Utilities

Other Fac. Cost

Activities
House keeping
Laundry
Grounds and Pool
Registration
Breakfast room
Administration
Security
Room repair and maintenance
Utilities
Total

Activity cost
499,400.00
422,800.00
1,033,600.00
669,000.00
443,200.00
176,600.00
327,800.00
655,600.00
210,000.00
4,438,000.00

Cost driver
Square feet
Number of occupants
Number of rooms
Number of occ. rooms
Number of occupants
Number of occ. rooms
Number of rooms
Square feet
Square feet

Cost driver volume/year

Rooms

# of rooms

square feet

# of occupants

0%
0%
0%
0%
0%
0%
0%
0%
100%
100%

Ocean Front
Ocean View
Pool Side
1 Room Suite
2 Room Suite
Control sum
Capacity utilization
Rooms

Ocean Front
Ocean View
Pool Side
1 Room Suite
2 Room Suite
Control sum

General Admin.
5%
10%
40%
15%
10%
5%
5%
10%
0%
100%

50
250
18
16
16
350

300.00
300.00
300.00
500.00
900.00

40
188
11
8
8
255

14,600.00
68,620.00
4,015.00
2,920.00
2,920.00

# of rooms

5%
10%
20%
0%
15%
20%
10%
20%
0%
100%

30,181,850
406,610
127,750
78,220
406,610
78,220
127,750
30,181,850
30,181,850

3.00
3.00
3.00
4.00
6.00

Housekeeping

30.00
45.00
60.00
60.00
60.00
255.00

Capacity utilization

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tes 365 days a year

Cost/resource driver
700
1900000
408000
1920000

95000

Hotel Operations

Rooms

20%
10%
10%
20%
10%
0%
10%
20%
0%
100%

Number of suites

Ocean Front
Ocean View
Pool Side
1 Room Suite
2 Room Suite***

Square feet per room

50
250
18
16
16
350

300.00
300.00
300.00
500.00
900.00
2,300.00

839500

Cost/cost driver
0.02
1.04
8.09
8.55
1.09
2.26
2.57
0.02
0.01

(rate of occupancy * cost driver cost)

Housekeeping

Laundry

4.96
45.00
60.00
60.00
60.00
229.96
0.216%
Laundry

Grounds and pool

3.12
20.00
20.00
20.00
20.00
83.12
0.280%
Grounds and pool

20.00
20.00
20.00
20.00
20.00
100.00

Registration

Registration

30.00
35.00
20.00
20.00
20.00
125.00

Breakfast room

8.09
35.00
20.00
20.00
20.00
103.09

6.84
6.41
5.13
4.28
4.28
26.94
0.007%
Breakfast room

1.00
1.00
1.00
1.00
1.00
5.00

400.00
375.00
250.00
250.00
250.00
1,525.00

3.27
3.27
3.27
4.36
6.54
20.71
0.026%
Administration

60.00
75.00
45.00
45.00
45.00
270.00

#VALUE!

1544.964%

14.286%

7625.000%

1350.000%

Square feet total

# of occupants

15,000.00
75,000.00
5,400.00
8,000.00
14,400.00
117,800.00

Administration

# of occupants per room

3.00
3.00
3.00
4.00
6.00
1,114.00

Security

1.81
1.69
1.35
1.13
1.13
7.11
0.006%
Security

Rm repai and main.

2.57
25.00
14.00
14.00
14.00
69.57
0.000%
Rm repai and main.

20.00
25.00
14.00
14.00
14.00
87.00

6.52
6.52
6.52
10.86
19.55
49.96
0.000%
Utilities

240.00
180.00
120.00
120.00
120.00
780.00

Average Usage %

150.00
750.00
54.00
64.00
96.00

Daily used rooms

80.00%
75.00%
60.00%
50.00%
50.00%

40
188
11
8
8

214

82,690.00

Utilities

Kitchenware rep

2.09
2.09
2.09
3.48
6.26

2.00
3.00

435.000%

756.615%

Daily used Sq. ft

Annual total rooms

12,000.00
56,250.00
3,240.00
4,000.00
7,200.00

4,380,000.00
20,531,250.00
1,182,600.00
1,460,000.00
2,628,000.00

78,219.50

30,181,850

toiletries

Coffee/tea

2.00
2.00
2.00
3.00
4.00

Annual Total Sq ft

14400

406,610.00

Cost per room

3.00
3.00
3.00
5.00
8.00

Cost

Annual total rooms

Total cost

44.26
149.98
137.36
148.10
166.76

2,213.12
37,495.44
2,472.48
2,369.68
2,668.11

Cost/room

1,509.85
1,549.95
1,077.40
1,077.40
1,077.40

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