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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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