Hammersley hotels bases its budget on guest-days. The hotel's static budget for April appears below: Budgeted number of guest-days.........................8,700 Budgeted variable overhead costs: Supplies...............................................................$ 60,900 Laundry.................................................................. 33,060 Total variable overhead cost ...............................93,960 Budgeted fixed overhead costs: Wages and salaries................................................. 80,910 Occupancy costs..................................................... 38,280 Total fixed overhead cost..................................... 119,190 Total budgeted overhead cost........................... $213,150 The total overhead cost at an activity level of 9,700 guest-days per month should be:
Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
Hammersley hotels bases its budget on guest-days. The hotel's static budget for April appears below:
Budgeted number of guest-days.........................8,700
Budgeted variable
Supplies...............................................................$ 60,900
Laundry.................................................................. 33,060
Total variable overhead cost ...............................93,960
Budgeted fixed overhead costs:
Wages and salaries................................................. 80,910
Occupancy costs..................................................... 38,280
Total fixed overhead cost..................................... 119,190
Total budgeted overhead cost........................... $213,150
The total overhead cost at an activity level of 9,700 guest-days per month should be:
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 1 images
