5. Papenfuss Family Inn is a bed and breakfast establishment in a converted 100-

Question

5. Papenfuss 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:

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 60guests?

A. $54,031.00

B. $9,542.50

C. $9,457.00

D. $8,555.84

Activity level 70 guests Variable overhead costs: Supplies $ 108.50 Laundry 490.00 Fixed overhead costs: Utilities 414.00 Salaries and wages 4,970.00 Depreciation 3,560.00 Total overhead cost $ 9,542.50

Explanation / Answer

Total budgeted overhead cost = (108.5+490)/70*60+(414+4970+3560)= 9457 Option C is correct

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