Mongelli Family Inn is a bed and breakfast establishment in a converted 100-year

Question

Mongelli Family Inn is a bed and breakfast establishment in a converted 100-year-old mansion. The Inn's guests breakfasts and individually decorated rooms. The Inn's overhead budget for the most recent month appears below Activity level Variable overhead costs: 90 guests Supplies Laundry $ 234 315 Fixed overhead costs: Utilities Salaries and wages Depreciation 220 4,290 2,689 $7,739 Total overhead cost 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? Multiple Choice

Explanation / Answer

CALCULATION OF THE ACTIVITY LEVEL AT 99 GUESTS PARTICULARS No. of Guests Variable Cost per guest Total Costs Amount Variable Overhead Costs Suppliies 234 $                          99 $                           23,166 Laundary 315 $                          99 $                           31,185 Fixed Overhead Costs: Utilities $                                 220 Salary Wages $                             4,290 Depreciation $                             2,680 Total Costs $                           61,541 Answer = Option 2 = $ 61,541

Related Questions

Navigate

• Browse (All)
• Browse M
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.