Sleep-EZ Suites Inc., operates a downtown hotel property that has 600 rooms. On average, 90% of...

Sleep-EZ Suites Inc., operates a downtown hotel property that has 600 rooms. On average, 90% of Sleep-EZ Suites's rooms are occupied on weekdays, and 60% are occupied during the weekend. The manager has asked you to develop a direct labor budget for the housekeeping and restaurant staff for weekdays and weekends. You have determined that the housekeeping staff requires 40 minutes to clean each occupied room. The housekeeping staff is paid $10 per hour. The restaurant has 12 full-time staff (eight-hour day) on duty, regardless of occupancy. However, for every 20 occupied rooms, an additional person is brought in to work in the restaurant for the eight-hour day. The restaurant staff is paid $8 per hour.

Determine the estimated housekeeping, restaurant, and total direct labor cost for an average weekday and average weekend day. Enter percentages as whole numbers.

Sleep-EZ Suites Inc.
Direct Labor Cost Budget
For a Weekday or a Weekend Day
	Weekday	Weekend Day
Room occupancy
Room capacity
Occupied percent	x%	x%
Rooms occupied
Housekeeping
Number of minutes to clean a room	x	x
Total minutes
Total hours
Labor rate per hour	x$	x$
Housekeeping daily labor budget	$	$
Restaurant staff
Base restaurant staff
Incremental 20 room blocks
Total staff
Hours per day	x	x
Total hours
Labor rate per hour	x$	x$
Restaurant staff daily labor budget	$	$
Total daily labor budget	$	$

Expert Solution

SLEEP-EZ SUITES INC.
Direct Labor Cost Budget
For a Weekday or a Weekend Day
	Weekday	Weekend Day
Room occupancy	600	600
Room capacity	600	600
Occupied percent	90%	60%
Rooms occupied	540	360
Housekeeping
Number of minutes to clean a room	40.00	40.00
Total minutes	21,600.00	14,400.00
Total hours	360.00	240.00
Labor rate per hour	10.00	10.00
Housekeeping daily labor budget	3,600.00	2,400.00
Restaurant staff
Base restaurant staff	12.00	12.00
Incremental 20 room blocks	27.00	18.00
Total staff	39.00	30.00
Hours per day	8.00	8.00
Total hours	312.00	240.00
Labor rate per hour	8.00	8.00
Restaurant staff daily labor budget	2,496.00	1,920.00
Total daily labor budget	6,096.00	4,320.00

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