3-15

Yewston Hotel bases its budgets on guest-days. The hotel's static budget for April appears below: Budgeted number of guest-days 2,300 Budgeted variable overhead costs: Supplies @ $3.40 per guest-day $7,820 Laundry @ $9.40 per guest-day 21,620 Total variable overhead cost $29,440 Budgeted fixed overhead costs: Wages and salaries $10,120 Occupancy costs 25,300 Total fixed overhead cost 35,420 Total budgeted overhead cost $64,860 The total variable cost at the activity level of 3,200 guest-days per month should be: $40,960 $49,280 $29,440 $35,420