Ostler Hotel bases its budgets on guest-days. The hotel's static budget for April appears below:...
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Accounting
Ostler Hotel bases its budgets on guest-days. The hotel's static budget for April appears below:
| Budgeted number of guest-days | 8,700 | |
| Budgeted variable overhead costs: | ||
| Supplies (@$7.00 per guest-day) | $ | 60,900 |
| Laundry (@$3.80 per guest-day) | 33,060 | |
| Total variable overhead cost | 93,960 | |
| Budgeted fixed overhead costs: | ||
| Wages and salaries | 80,910 | |
| Occupancy costs | 38,280 | |
| Total fixed overhead cost | 119,190 | |
| Total budgeted overhead cost | $ | 213,150 |
The total overhead cost at an activity level of 9,700 guest-days per month should be:
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