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: Activity level 68 guests Variable overhead costs: Supplies $ 102.00 Laundry 469.20 Fixed overhead costs: Utilities 351.00 Salaries and wages 5,460.00 Depreciation 3,280.00 Total overhead cost $ 9,662.20 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 58 guests

Respuesta :

Answer:

total overhead cost for the 58 guests will be $ 9578.2

Explanation:

Given:

the data has been provided for the 68 guests,

thus, for 1 guests

Variable overhead:

Supplies = $ 102.00/ 68 =  $ 1.5

Laundry = 469.20/ 68 = $ 6.9

now, the fixed cost remains the same

thus, Fixed overhead costs:

Utilities = 351.00

Salaries and wages = 5,460.00

Depreciation = 3,280.00

hence, for 58 guests

Variable overhead:

Supplies =  $ 1.5 × 58 = $ 87

Laundry = $ 6.9 × 58 = $ 400.2

now, the fixed cost remains the same

thus, Fixed overhead costs:

Utilities = $ 351.00

Salaries and wages = $ 5,460.00

Depreciation = $ 3,280.00

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Total overhead cost = $ 9578.2

therefore, the total overhead cost for the 58 guests will be $ 9578.2