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:
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?
A) $7,793.90
B) $61,541.00
C) $8,512.90
D) $7,739.00

Question

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:
 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?
A) $7,793.90 
B) $61,541.00 
C) $8,512.90 
D) $7,739.00

Quizplus · Accepted Answer

Variable cost per guest for supplies = $234 ÷ 90 guests = $2.60 per guest
Variable cost per guest for laundry = $315 ÷ 90 guests = $3.50 per guest
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Mongelli Family Inn Is a Bed and Breakfast Establishment in a Converted