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

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jepessoa

Answer:

total overhead costs = $7,793.90

Explanation:

the overall budget is missing, so I looked for a similar question:

  • 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 total budgeted overhead costs must include the variable overhead costs plus the fixed overhead costs:

variable overhead costs = [($234 + $315)/90] x 99 = $603.90

fixed overhead costs = $220 + $4,290 + $2,680 = $7,190

total overhead costs = $7,793.90

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