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University Inn's most recent monthly expense analysis report revealed significant cost overruns. The manager was asked to explain the deviations. Below is the budget v.

University Inn's most recent monthly expense analysis report revealed significant cost overruns. The manager was asked to explain the deviations. Below is the "budget v. actual" expense report for the month in question.

Actual

Budget

Fire insurance on the hotel building

$2,200

$2,000

Towels used in the gym

500

400

Room cleaning supplies

300

200

Flowers for the reception desk

600

800

Staff wages

60,000

55,000

Management salaries

49,500

45,000

Utilities

11,000

10,000

Maintenance

35,000

30,000

Total

$159,100

$143,400

The Inn has observed that towels used in the gym, room cleaning supplies, staff wages, and utilities all vary with activity. The other costs are fixed.

The university's football team was on a winning streak and numerous alumni were returning to campus in October, resulting in a 90% occupancy rate during the month. The preceding budget was based upon an assumed 60% occupancy rate.

Calculate total budgeted expenses based on a 90% occupancy rate.

A. $176,200

B. $171,200

C. $148,100

D. $143,400

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