A Hotel Has 200 Rooms

question 27

Multiple Choice

A hotel has 200 rooms.If,on a given day,150 rooms are occupied,which number represents the utilization of hotel rooms?

• A) 33%
• B) 50%
• C) 66%
• D) 75%

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Definitions:

Fixed Factory Overhead Volume Variance

The difference between the budgeted and actual fixed overhead costs, attributable to changes in production volume.

Standard Factory Overhead Rate

A predetermined rate used to assign manufacturing overhead costs to individual units of output on a consistent basis.

Normal Capacity

The average operating capacity a company can sustain under normal circumstances, taking into account seasonal and cyclical demand fluctuations.

Direct Labor Hour

The amount of time spent by employees directly working on producing goods or services.