Ostler Hotel bases its budgets on guest-days. The hotel's static budget for April appears below: Budgeted number of guest-days 8,700Budgeted variable overhead costs: Supplies (@$7.00 per guest-day)$60,900Laundry (@$3.80 per guest-day) 33,060Total variable overhead cost 93,960Budgeted fixed overhead costs: Wages and salaries 80,910Occupancy costs 38,280Total fixed overhead cost 119,190Total overhead cost$213,150?The total overhead cost at an activity level of 9,700 guest-days per month should be:
A. $223,950
B. $224,920
C. $237,650
D. $213,150
Answer: A
Business
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