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Question - Welcome to the Hotel California. You are assigned to budget for the next quarter operation. We are in September and the hotel needs to budget for the 4th quarter; for October, November, and December. The expected occupancy is estimated to be 2000 rooms. Each room will require 5 hours of room service. The hourly rate is $17 per hour. Your cost of food is $17 for breakfast; currently, your food purchase's total amount is $6000 and you would like to keep on hand $9000 for the New Year beginning inventory. Room rate is estimated to be $250.
1. Construct a sales budget.
2. Construct a direct labor budget for the upcoming quarter.
3. Construct direct material/purchases budget for the upcoming quarter.
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