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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. What would be the total budgeted overhead cost for a month if the activity level is 99 guests?

Respuesta :

Answer:

$7,793.90

Explanation:

The computation of total budgeted overhead cost is shown below:-

Variable overhead cost = (Supplies + Laundry) ÷ Activity level × Activity level is 99 guests

= ($234 + $315) ÷ 90 × 99

= $603.9

Fixed Overhead cost = Remain same

= $220 + $4,290 + $2,680

= $7,190

Total cost = Fixed Overhead cost + Variable overhead cost

= $7,190 + $603.90

= $7,793.90

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