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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 | 78 | guests | |
Variable overhead costs: | |||
Supplies | $ | 136.50 | |
Laundry | 577.20 | ||
Fixed overhead costs: | |||
Utilities | 381.00 | ||
Salaries and wages | 5,430.00 | ||
Depreciation | 3,580.00 | ||
Total overhead cost | $ | 10,104.70 | |
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 68guests?
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