Dwelmont Hotel bases its budgets on guest-days. The hotel's static budget for May appears below:
-The total variable cost at the activity level of 2,600 guest-days per month should be:

Question

Dwelmont Hotel bases its budgets on guest-days. The hotel's static budget for May appears below: 
-The total variable cost at the activity level of 2,600 guest-days per month should be:

Quizplus · Accepted Answer

The total variable cost is calculated by multiplying the variable cost per guest-day by the number of guest-days. If the variable cost per guest-day is given or can be derived, multiplying it by 2,600 guest-days will give the total variable cost.

Dwelmont Hotel Bases Its Budgets on Guest-Days