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5. Papenfuss Family Inn is a bed and breakfast establishment in a converted 100-year-old mansion. The Inn's guests appreciate its gourmet breakfasts and individually decorated
5. Papenfuss Family Inn is a bed and breakfast establishment in a converted 100-year-old mansion. The Inn's guests appreciate its gourmet breakfasts and individually decorated rooms. The Inn's overhead budget for the most recent month appears below:
Activity level | 70 | guests | |
Variable overhead costs: | |||
Supplies | $ | 108.50 | |
Laundry | 490.00 | ||
Fixed overhead costs: | |||
Utilities | 414.00 | ||
Salaries and wages | 4,970.00 | ||
Depreciation | 3,560.00 | ||
Total overhead cost | $ | 9,542.50 | |
The Inn's variable overhead costs are driven by the number of guests. What would be the total budgeted overhead cost for a month if the activity level is 60guests?
A. $54,031.00
B. $9,542.50
C. $9,457.00
D. $8,555.84
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