| |
| |
|
Accommodation |
Catering |
H&F |
Golf |
Admin. |
Total |
| |
|
€ |
€ |
€ |
€ |
€ |
€ |
| |
|
1,276,550 |
31,780 |
24,810 |
191,610 |
145,100 |
1,669,850 |
| Power |
Floor area |
21,000 |
7,500 |
12,000 |
3,000 |
4,500 |
48,000 |
| Insurance |
Asset € |
37,000 |
11,000 |
19,200 |
18,400 |
4,400 |
90,000 |
| Depreciation |
Asset € |
92,500 |
27,500 |
48,000 |
46,000 |
11,000 |
225,000 |
| Employee Benefits |
Employees |
60,000 |
30,000 |
22,500 |
7,500 |
15,000 |
135,000 |
| Total overhead |
1,487,050 |
107,780 |
126,510 |
266,510 |
180,000 |
2,167,850 |
| |
|
|
|
|
|
|
| Re-apportioned Admin. |
90,000 |
54,000 |
18,000 |
18,000 |
(180,000) |
0 |
| Total overhead |
1,577,050 |
161,780 |
144,510 |
284,510 |
0 |
2,167,850 |
|
Part b) Overhead absorption rates
| |
Accommodation |
Catering |
H&F |
Golf |
| Overhead |
€1,577,050 |
€161,780 |
€144,510 |
€284,510 |
| Base |
25,500 |
21,500 |
6,500 |
9,000 |
| Rate |
=€61.845 |
=€7.524 |
=€22.232 |
=€31.612 |
| |
per bed night |
per meal |
per hour |
per round |
Part c) Selling price for stag party booking
Note: the question in the text book was missing direct cost information and should have contained the following piece.
|
Accommodation |
Catering |
Average direct cost |
€1.20 per bed night |
€4.30 per meal |
|
| |
Quantity |
Cost |
Total |
| Direct costs |
|
|
|
Accommodation
|
2 |
€1.20 |
€2.40 |
Catering
|
2 |
€4.30 |
€8.60 |
| Overhead costs |
|
|
|
Accommodation
|
2 |
€ 61.85 |
€ 123.69 |
Catering
|
2 |
€ 7.52 |
€ 15.05 |
Fitness
|
2 |
€ 22.23 |
€ 44.46 |
Golf
|
3 |
€ 31.61 |
€ 94.84 |
| Cost per person |
|
€ 289.04 |
| Number of people |
|
x 8 |
| |
|
|
€ 2,312.32 |
| Profit margin (2,312.32 / 60 x 40) |
€ 1,541.55 |
| Selling price |
|
€ 3,853.87 |
If you did question without the direct costs the answer would have been:
| |
Quantity |
Cost |
Total |
Accommodation
|
2 |
€ 61.85 |
€ 123.69 |
Catering
|
2 |
€ 7.52 |
€ 15.05 |
Fitness
|
2 |
€ 22.23 |
€ 44.46 |
Golf
|
3 |
€ 31.61 |
€ 94.84 |
Cost per person |
|
€ 278.04 |
Number of people |
|
x 8 |
| |
|
|
€ 2,224.32 |
Profit margin (2224.32 / 60 x 40) |
€ 1,482.88 |
Selling price |
|
€ 3,707.21 |
|