Reference no: EM133058245
Question - The Alexis Hotel bases its budgets on guest-days. The hotel's static budget for June appears below:
Budgeted number of guest-days 7,300
Budgeted variable overhead cost:
Supplies (@ $ 6.70 per guest-day) $48,910
Laundry (@ $ 2.20 per guest-day) 16,060
Total variable overhead cost: 64,970
Budgeted fixed overhead cost:
Wages and salaries 68,620
Occupancy cost 16,060
Total fixed overhead cost: 84,680
Total budgeted overhead cost: $149,650
Required - What the total overhead cost at an activity level of 8,400 guest-days per month?