Solved: The inns variable overhead costs are driven by the number, Accounting Basics

The inns variable overhead costs are driven by the number

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

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?

A. $8,274.40

B. $7,373.24

C. $52,848.40

D. $8,343.40

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Accounting Basics: The inns variable overhead costs are driven by the number

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Accounting Basics: The inns variable overhead costs are driven by the number

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