a. What is Job-order Costing? Also, explain the importance of Job-order Costing. b. Following are the information of a renowned Hotel in Nepal…
BBS Cost and Management Accounting · 2079 · Solved Question with Answer
a. What is Job-order Costing? Also, explain the importance of Job-order Costing.
b. Following are the information of a renowned Hotel in Nepal
Expenses (Rs.) summary:
Total salaries = 50,000 per month
Lighting and heating = 60,000 per annum
Repair and maintenance = 40,000 per annum
Depreciation on fixed assets = 15% of Rs.1,000,000
Insurance = Rs.5,000 per month
Miscellaneous = Rs.194,000 per annum
Profit margin 25% on cost
Total number of rooms = 20
Occupancy ratio:
For 150 days = 100%
For 210 days = 60%
Required:
a. Operating cost statement
b. Single room charge per day