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 level86guestsVariable overhead costs: Supplies$86.00 Laundry507.40 Fixed overhead costs: Utilities340.00 Salaries and wages4,790.00 Depreciation 2,620.00 Total overhead cost$8,343.40 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?

Answered: Papenfuss Family Inn is a bed and…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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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	86	guests
Variable overhead costs:
Supplies	$86.00
Laundry	507.40
Fixed overhead costs:
Utilities	340.00
Salaries and wages	4,790.00
Depreciation	2,620.00
Total overhead cost	$8,343.40

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?

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