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

Jessica Watson · Accepted Answer

Final Answer : A, Explanation :  Variable cost per guest for supplies = $234 ÷ 90 guests = $2.60 per guestVariable cost per guest for laundry = $315 ÷ 90 guests = $3.50 per guest

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