University Inn's most recent monthly expense analysis report revealed significant cost overruns. The manager was...
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University Inn's most recent monthly expense analysis report revealed significant cost overruns. The manager was asked to explain the deviations. Below is the "budget v. actual" expense report for the month in question. Actual Budget Fire insurance on the hotel building $2,200 $2,000 Towels used in the gym 500 400 Room cleaning supplies 300 200 Flowers for the reception desk 600 800 Staff wages 60,000 55,000 Management salaries 49,500 45,000 Utilities 11,000 10,000 Maintenance 35,000 30,000 Total $159,100 $143,400 The Inn has observed that towels used in the gym, room cleaning supplies, staff wages, and utilities all vary with activity. The other costs are fixed. The university's football team was on a winning streak and numerous alumni were returning to campus in October, resulting in a 90% occupancy rate during the month. The preceding budget was based upon an assumed 60% occupancy rate. Calculate total budgeted expenses based on a 90% occupancy rate
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