Hotel X bases its budgets on guest-days. The hotel’s static…
Hotel X bases its budgets on guest-days. The hotel’s static budget for August appears below: The budgeted number of guest-days 4,300 Budgeted variable costs: Supplies (@$9.60 per guest-day) $ 41,280 Laundry (@$9.40 per guest-day) 40,420 Total variable cost 81,700 Budgeted fixed costs: Wages and salaries 57,190 Occupancy costs 52,030 Total fixed cost 109,220 Total cost $ 190,920 The total fixed cost at the activity level of 5,500 guest-days per month should be: