Question
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.
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........................ 86 guests
Variable overhead costs:
Supplies...................... $86
Laundry...................... $507.40
Fixed overhead costs:
Utilities........................ $340.00
Salaries and wages.... $4,790.00
Depreciation............... $1,719.00
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 76 guests?
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