Monterey Hotel bases its budgets on guest-days. The hotel's static budget for August appears below: Budgeted number of guest-days 4,300Budgeted variable costs: Supplies (@$9.60 per guest-day)$41,280 Laundry (@$9.40 per guest-day) 40,420Total variable cost 81,700Budgeted fixed costs: Wages and salaries 57,190 Occupancy costs 52,030Total fixed cost 109,220Total cost$ 190,920The total cost at the activity level of 5,200 guest-days per month should be:
A. $190,920
B. $230,880
C. $208,020
D. $209,940
Answer: C
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