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Question - Mongelli 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 4,290
Depreciation 2,680
Total overhead cost $ 7,739
The Inn's variable overhead costs are driven by the number of guests.
Required - What would be the total budgeted overhead cost for a month if the activity level is 99 guests?
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