1. **State the problem:** Calculate the total overhead cost at an activity level of 9,700 guest-days per month given the budgeted costs for 8,700 guest-days. 2. **Given data:** - Budgeted guest-days = 8,700 - Variable overhead costs: - Supplies = $7.00 per guest-day - Laundry = $3.80 per guest-day - Total variable overhead cost = $93,960 - Fixed overhead costs = $119,190 - Total budgeted overhead cost = $213,150 3. **Formula used:** Total overhead cost = Variable overhead cost + Fixed overhead cost Variable overhead cost changes with activity level, fixed overhead cost remains constant. 4. **Calculate variable overhead cost at 9,700 guest-days:** Variable cost per guest-day = $7.00 + $3.80 = $10.80 Variable overhead cost at 9,700 guest-days: $$10.80 \times 9,700 = 104,760$$ 5. **Fixed overhead cost remains the same:** $$119,190$$ 6. **Calculate total overhead cost at 9,700 guest-days:** $$104,760 + 119,190 = 223,950$$ 7. **Final answer:** The total overhead cost at 9,700 guest-days is **$223,950**.