Page 19 - DCOM206_COST_ACCOUNTING_II

Cost Accounting – II

Notes Solution:
Operating Cost Sheet of Udai Hotel
Particulars of Expenses Amount in (`)
Managerial staff salaries 1,80,000
Repairs to building 14,800
Depreciation on building @ 5% 20,000
Depreciation on equipment @ 10% 10,000
Room attendant’s salaries :
Summer: ` 2 × 100 rooms × 80% × 30 days × 6 months = 28,800
Winter: ` 2 × 100 rooms × 30% × 30 days × 6 months = 10,800 39,600
Lighting, heating and power charges:
Summer: ` 50 × 6 months × 100 rooms × 80% = 24,000
Winter: ` 50 × 6 months × 100 rooms ×30% = 9,000
33,000 36,600
Power: ` 20 × 6 months × 100 rooms × 30% = 3,600
Internal decoration 20,000
Linen 14,800
Sundries 16,600
Interest on investment @ 5% on ` 5,00,000 25,000
Total Operating Cost 3,72,600

Add: Profit 25% on Cost other than interest
86,900
(25% on ` 3,47,600 (3,72,600 – 25,000) = ` 86,900
Total Rooms Rent for the year 4,59,500
Total Room Days 19,800 (1)
Rent per room per day = Total Room Rent ÷ Total Room Days 23.00 (2)

Working notes:
(1) Calculation of Total Room Days:
Summer: 100 rooms × 6 months × 30 days × 80% = 14,400
Winter: 100 rooms × 6 months × 30 days × 30% = 5,400

Total Room Days = 19,800
(2) Rent per room per day = 4,59,500 ÷ 19,800 = 23.21 or ` 23 (Approx.)

1.4.4 Hospital Costing

Costing of hospital may relate to ascertaining the cost of medical services rendering by a
Nursing home or dispensary belonging to an industry or organisation.

Objectives of Hospital Costing

The main objectives of hospital costing are:
(i) To calculate cost of per patient per day,
(ii) Inter comparison between two or more hospitals or nursing homes,

(iii) Analysis of cost of hospital or nursing home for decision-making, and
(iv) Collection of cost data for cost control.

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