Question
The Alexis 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
The Alexis 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 cost:
Supplies (@ $ 6.70 per guest-day) ........... $ 48,910
Laundry (@ $ 2.20 per guest-day) .......... 16,060
____________
Total variable overhead cost : ............... 64,970
Budgeted fixed overhead cost:
Wages and salaries ............. 68,620
Occupancy cost .............. 16,060
____________
Total fixed overhead cost: ............. 84,680
Total budgeted overhead cost: ............. $149,650
The total overhead cost at an activity level of 8,400 guest-days per month should be:
Answer: _____________
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