Question
Dike Hotel bases its budgets on guest-days. The hotel's static budget for June appears below: Budgeted number of guest-days 7,300. Budgeted variable overhead costs supplies
Dike Hotel bases its budgets on guest-days. The hotel's static budget for June appears below:
Budgeted number of guest-days 7,300. Budgeted variable overhead costs supplies at $6.70 per guest day is $48,910 and laundry at $2.20 per guest day is $16,060 so total variable overhead costs is $64,970. Budgeted fixed overhead costs is wages and salaries $68,620 and occupancy costs of $16,060 for a total fixed overhead cost of $84,680 and a total budgeted overhead cost of $149,650.
The total overhead cost at an activity level of 8,400 guest-days per month should be:
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