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 76 guests?

Question

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 76 guests?

Quizplus · Accepted Answer

Variable cost per guest for supplies = $86.00 ÷ 86 guests = $1.00 per guest
Variable cost per guest for laundry = $507.40 ÷ 86 guests = $5.90 per guest
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Papenfuss Family Inn Is a Bed and Breakfast Establishment in a Converted