Motel bases its budgets on guest-days. The motel's static budget for July appears below: Budgeted number of guest-days Budgeted variable overhead costs Supplies (@$7.90 per guest-day) Laundry (@$5.10 per guest-day) Total variable overhead cost Budgeted fixed overhead costs Wages and salaries Occupancy costs Total fixed overhead cost Total budgeted overhead cost O $206.040 $129.640 6,800 $211.240 $117.640 $53,720 34,680 88,400 72,760 44,880 The total overhead cost at an activity level of 7.200 guest-days per month should be: 117,640 $206,040
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.
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