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 | 62 | guests | |
| Variable overhead costs: | |||
| Supplies | $ | 83.70 | |
| Laundry | 409.20 | ||
| Fixed overhead costs: | |||
| Utilities | 540.00 | ||
| Salaries and wages | 5,140.00 | ||
| Depreciation | 2,650.00 | ||
| Total overhead cost | $ | 8,822.90 | |
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 52guests?
$53,317.40
$8,822.90
$8,743.40
$7,842.24
Total Variable cost per guest = (83.70+409.20)/62
= 7.95 per guest
Total fixed cost = 540+5140+2650 = 8330
Total budgeted overhead cost
= Variable (7.95*52) + Fixed 8330
= 8743.40
Option C
Papenfuss Family Inn is a bed and breakfast establishment in a converted 100-year-old mansion. The Inn's...
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