Marchi 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 70 guests?
A)$42,460.00
B)$6,620.00
C)$7,086.15
D)$6,580.00

Question

Marchi 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 70 guests?
A)$42,460.00 
B)$6,620.00 
C)$7,086.15 
D)$6,580.00

Quizplus · Accepted Answer

Variable cost per guest = ($156 + $364) F1F1F1S1F1F1F10 65 guests = $8 per guest
($250 + $4,480 + $1,330) + ($8 F1F1F1S1F1F1F10 70) = $6,620.00

Marchi Family Inn Is a Bed and Breakfast Establishment in a Converted