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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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