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Motel bases its budgets on guest-days. The motel's static budget for July appears below: Budgeted number of guest-days 6,800 Budgeted variable overhead costs Supplies
Motel bases its budgets on guest-days. The motel's static budget for July 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 Total budgeted overhead cost 117,640 $206,040 The total overhead cost at an activity level of 7,000 guest-days per month should be: O $208,640 $129,640 $211,240 $117,640
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