Question
Use the following data for questions 21 and 22: Yewston Hotel bases its budgets on guest-days. The hotels static budget for April appears below: Budgeted
Use the following data for questions 21 and 22:
Yewston Hotel bases its budgets on guest-days. The hotels static budget for April appears below:
Budgeted number of guest-days ..............
2,300
Budgeted variable costs:
Supplies (@$3.40 per guest-day) .........
$ 7,820
Laundry (@$9.40 per guest-day) .........
21,620
Total variable cost ...................................
29,440
Budgeted fixed costs:
Wages and salaries ...............................
10,120
Occupancy costs ...................................
25,300
Total fixed cost ........................................
35,420
Total cost .................................................
$64,860
21.
The total variable cost at the activity level of 3,200 guest-days per month should be:
A. $40,960
B. $49,280
C. $29,440
D. $35,420
22.
The total fixed cost at the activity level of 3,400 guest-days per month should be:
A. $52,360
B. $35,420
C. $95,880
D. $64,860
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started