Fuhrer Hotel bases its budgets on guest-days. The hotel\'s static budget for Dec
ID: 2500007 • Letter: F
Question
Fuhrer Hotel bases its budgets on guest-days. The hotel's static budget for December appears below: Budgeted number of guest-days 6,800 Budgeted variable overhead costs: Supplies (@$7.90 per guest-day) $53,720 Laundry (@$5.10 per guest-day) 34,680 Total variable overhead cost 88,400 Budgeted fixed overhead costs Wages and salaries 72,760 Occupancy costs 44,880 Total fixed overhead cost 117,640 Total budgeted overhead cost $206,040 The total overhead cost at an activity level of 7,500 guest-days per month should be: Fuhrer Hotel bases its budgets on guest-days. The hotel's static budget for December appears below: Budgeted number of guest-days 6,800 Budgeted variable overhead costs: Supplies (@$7.90 per guest-day) $53,720 Laundry (@$5.10 per guest-day) 34,680 Total variable overhead cost 88,400 Budgeted fixed overhead costs Wages and salaries 72,760 Occupancy costs 44,880 Total fixed overhead cost 117,640 Total budgeted overhead cost $206,040 The total overhead cost at an activity level of 7,500 guest-days per month should be:Explanation / Answer
Fuhrer Hotel Per Day Amt $ Amt $ Amt $ No of Guest Days 6,800 7,500 Variable Cost Supplies 7.90 53,720 59,250 Laundry 5.10 34,680 38,250 Total variable cost 13.00 88,400 97,500 Fixed Overhead Costs Wages & Salaries 72,760 72,760 Occupance cost 44,880 44,880 Total Fixed Overhead costs 117,640 117,640 Total Budgeted Overhead Cost 206,040 215,140 So Total overhead cost at an activity level of 7500 guests days= $ 215,140.00
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.