PROBLEM 8 12 points Fuhrer Hotel bases its budgets on guest-days. The hotel\'s s

Question

PROBLEM 8 12 points Fuhrer Hotel bases its budgets on guest-days. The hotel's static budget for December appears below 6,800 Budgeted number of guest-days Budgeted variable overhead costs: Supplies (@$7.90 per guest-day) 53,720 34,680 Laundry (C$5.10 per guest-day) Total variable overhead cost 88,400 Budgeted fixed overhead costs Wages and salaries 72.760 44,880 Occupancy costs Total fixed overhead cost 117e40 3206040 Total budgeted overhead cost The total overhead cost at an activity level of 7.500 guest days per month should be

Explanation / Answer

The total overhead cost at an activity level of 7,500 guest-days per month should be : 215,140

Budgeted number of guest-days 7,500 Budgeted variable overhead costs: Supplies (@$7.90 per Guest-day) 59,250 Laundry (@$5.10 per Guest-day ) 38,250 Total Variable Overhead Cost 97,500 Budgeted fixed overhead costs Wages and Salaries 72,760 Occupancy costs 44,880 Total fixed overhead cost 117,640 Total Bugeted Overhead Cost 215,140

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