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A 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 90 guests
  • Variable Overhead costs:
  • Supplies $234
  • Laundry $315
  • Fixed Overhead Costs:
  • Utilities 220
  • Salaries and wages 4290
  • Depreciation 2680
  • Total Overhead Cost 7739

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 actual level is 99 guests? Assume that the activity levels of 90 guests and 99 guests are within the same relevant range.

Accounting Basics, Accounting

  • Category:- Accounting Basics
  • Reference No.:- M9969722

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