A Level Accounting (9706)•9706/12/M/J/24

Explanation
Calculate costs per occupied bed day using total bed occupancy
Steps:
- Determine daily occupied beds: 150 two-bed rooms × 2 beds = 300 beds; 50 one-bed rooms × 1 bed = 50 beds; total 350 beds per day.
- Compute total occupied bed days over 30 days: 350 beds/day × 30 days = 10,500 bed days.
- Divide total costs by total bed days: 28.57 per occupied bed day.
- Average length of stay is unused, as occupancy data suffices for bed days.
Why B is correct:
- Matches formula for unit cost: total costs ÷ total occupied bed days, standard in hospitality metrics.
Why the others are wrong:
- A: Underestimates by using room days (150 + 50 = 200 × 30 = 6,000) instead of bed days.
- C: Assumes all rooms are one-bed or ignores bed count, yielding 50.
- D: Divides by total possible beds (240 rooms × 30 × average beds/room ≈ 3,085), not occupied.
Final answer: B
Topic: Traditional costing methods
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