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Fuhrer Hotel bases its budgets on guest-days. The hotel's static budget for December appears below: Budgeted number of guest-days 6,800 Budgeted variable overhead costs: Supplies
Fuhrer Hotel bases its budgets on guest-days. The hotel's static budget for December | |||||||
appears below: | |||||||
Budgeted number of guest-days | 6,800 | ||||||
Budgeted variable overhead costs: | |||||||
Supplies (@$7.90 per guest-day) | $53,720 | ||||||
Laundry (@$5.10 per guest-day) | 34,680 | ||||||
Total variable overhead cost | 88,400 | ||||||
Budgeted fixed overhead costs | |||||||
Wages and salaries | 72,760 | ||||||
Occupancy costs | 44,880 | ||||||
Total fixed overhead cost | 117,640 | ||||||
Total budgeted overhead cost | $206,040 | ||||||
The total overhead cost at an activity level of 7,500 guest-days per month should be: |
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