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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 | 86 | guests |
Variable overhead costs: | ||
Supplies | $86.00 | |
Laundry | 507.40 | |
Fixed overhead costs: | ||
Utilities | 340.00 | |
Salaries and wages | 4,790.00 | |
Depreciation | 2,620.00 | |
Total overhead cost | $8,343.40 |
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?
$52,848.40
$8,343.40
$8,274.40
$7,373.24
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