The inns variable overhead costs are driven by the number

Reference no: EM13592145

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.

Reference no: EM13592145

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