Use the Table Below to Answer the Following Questions)

question 22

Multiple Choice

Use the table below to answer the following questions) .
Below is a room overbooking model spreadsheet for the Metza, a hotel chain. The hotel has 425 rooms priced at $180 per day each, and is usually fully booked. Reservations can be cancelled any time before 5:00 p.m. with no penalty. The hotel estimates an average overbooking cost of
$150. Customer demand is set at 400 with an average cancellation of 20. $$\begin{array} { | c | c | c | } \hline & \text { A } & B \\\hline & \begin{array} { c } \text { Hotel Overbonking Model } \\\text { for the Metza group af } \\\text { hotels }\end{array} & \\\hline 1 & & \\\hline 2 & \text { Data } & \\\hline 3 & & \\\hline 4 & & \\\hline 5 & \text { Rooms Available } &425 \\\hline 6 & \text { Price per room } & \$ 180 \\\hline 7 & \text { overbonking Cost } & \$ 150\\\hline 8 & & \\\hline 9 & & \\\hline 10 & & \\\hline\end{array}$$ $$\begin{array} { | c | c | c | } \hline 11 & \text { Reservation Limit } & 425 \\\hline 12 & \text { Customer Demand } & 400 \\\hline 13 & \text { Reservation Made } & \\\hline 14 & \text { Cancellations } & 20 \\\hline 15 & \text { Customer Arrivals } & \\\hline 16 & \text { Overbonked Custarers } & \\\hline\end{array}$$
-Calculate the customer arrivals at the Metza.

• A) 425
• B) 405
• C) 400
• D) 380

---

Definitions:

Percentage Of Completion

An accounting method used to recognize revenue and expenses of long-term contracts as a function of the estimated completion percentage of the project.

Direct Materials

Direct materials are the raw materials that are directly incorporated into a finished product and are a significant portion of the total production cost.

Equivalent Unit

A measure used in cost accounting to represent a portion of a product's costs when it is partially completed.

Finished Goods Inventory

The stock of completed products ready for sale at the end of an accounting period.