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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 66 guests
Variable overhead costs:
Supplies $ 95.70
Laundry 448.80
Fixed overhead costs:
Utilities 582.00
Salaries and wages 4,810.00
Depreciation 2,730.00
Total overhead cost $ 8,666.50

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 56guests?

$53,158.00

$8,666.50

$8,584.00

$7,682.84

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