Ostler Hotel determines its budgets based on guest days. The hotel's static budget for April is shown
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Question:
Ostler Hotel determines its budgets based on guest days. The hotel's static budget for April is shown below:
Budgeted guest-days | 8.700 | |
Budgeted variable overheads: | ||
Ingredients ($7.00 per @guest-day) | $ | 60.900 |
Laundry ($3.80 per @guest-day) | 33.060 | |
Total variable overhead cost | 93.960 | |
Budgeted fixed overheads: | ||
Wages and salaries | 80.910 | |
occupancy costs | 38.280 | |
Total fixed overhead cost | 119.190 | |
Total budgeted overhead cost | $ | 213.150 |
Calculate the total overhead cost at the activity level of 9,700 guest-days per month.
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