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Ostler Hotel bases its budgets on guest-days. The hotel's static budget for April appears below: Budgeted number of guest-days 8,700 Budgeted variable overhead costs: Supplies
Ostler Hotel bases its budgets on guest-days. The hotel's static budget for April appears below:
Budgeted number of guest-days | 8,700 | |
Budgeted variable overhead costs: | ||
Supplies (@$7.00 per guest-day) | $ | 60,900 |
Laundry (@$3.80 per guest-day) | 33,060 | |
Total variable overhead cost | 93,960 | |
Budgeted fixed overhead costs: | ||
Wages and salaries | 80,910 | |
Occupancy costs | 38,280 | |
Total fixed overhead cost | 119,190 | |
Total budgeted overhead cost | $ | 213,150 |
The total overhead cost at an activity level of 9,700 guest-days per month should be:
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