IN-CLASS ACTIVITY: COSTING AND PRICING (SERVICE COSTING)

In connection with our lesson on Service costing, plot your costs for the following
services in a particular Hotel:
A. Hotel
1. Single room with electric fan-500
2. Single room with air conditioning unit- 1,000
3. Double room with air conditioning unit- 1,500
4. Family room with air conditioning unit-3,500
5. Suite room with jacuzzi bath- 5,000

B. Water concessionaire
Kindly show a sample computation of how you are going to charge water
consumption of your customers using gallons as your cost unit where a
gallon costs P2.00 for a maximum of 500 and an additional P0.10 additional
charges above the minimum use of water.

Solution:
This computation is per monthly consumption

√
This consumption is per year consumption
=
2 ×2.00 × 500

√
0.10 2 ×2.00 × 500
=

√ 4 ×500 0.10× 12
=

√
0.10 4 ×500
=

√ 2,000 1.2
=

√
0.10 2,000
=
=√ 20,000 1.2

= 141.42 monthly consumption =√ 1,666

=40.8 yearly consumption