Overhead Allocation Per Unit - Hospitality Industry

Jun 14, 2014
Reaction score
Hi guys,

I've been given a case study to solve for a hotel. I have to process an input sheet, p/l statement and I have also been given overheads.

So basically, I've been given the fixed salaries of departments such as Marketing, Admin, Maintenance with the count of employees under that department. Now, in the input sheet I will have to allocate everything on a unit (which will be occupied room night) basis.

Do I divide the fixed costs of the department by the occupied room nights (you can call this the number of rooms occupied in an year) to allocate the overhead costs?

Any help would be great.

Thank you :)


Ask a Question

Want to reply to this thread or ask your own question?

You'll need to choose a username for the site, which only take a couple of moments. After that, you can post your question and our members will help you out.

Ask a Question