Dortmund Hotel bases its budgets on guestdays The hotels sta

Dortmund Hotel bases its budgets on guest-days. The hotel\'s static budget for December appears below: The total overhead cost at an activity level of 7,500 guest-days per month should be: $227,250 $215,140 $216,140 $206,040

Solution

Total Overhead Cost Number of Guest Days 7500 Budgeted Variable Overhead Cost Supplies 7.9 59250 Laundry 5.1 38250 Total variable Overhead Cost 97500 Budgeted Fixed Overhead Cost Wages & Salaries 72760 Occupancy costs 44880 Total Fixed Cost 117640 Total Overhead Cost 215140 97500+117640 The correct option is B. $ 215140