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Problem 1: The management of Folt & Golt Hotel, which has 40 rooms on daily basis, has projected that the occupancy will be 50.00% with total revenue of $700,000 and total expenses of $80,000 for the next year. The income tax bracket is 40.00%. Assume that Folt & Golt only has single and double rooms with a double occupancy of 65.00%. The double rooms are sold at a premium of 25.00% over singles. Based on the information given, what are the individual ADRs for both single and double rooms for Folt & Golt (assume that there are 365 days in a year)?
A) $43.84 ADR of a single room and $54.80 ADR of a double room
B) $40.70 ADR of a single room and $50.15 ADR of a double room
C) $41.25 ADR of a single room and $54.80 ADR of a double room
D) $45.55 ADR of a single room and $60.38 ADR of a double room
From this information, it appears that the company is using a predetermined overhead rate, Find as a percentage of direct labor costs, of
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