A 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 90 guests
- Variable Overhead costs:
- Supplies $234
- Laundry $315
- Fixed Overhead Costs:
- Utilities 220
- Salaries and wages 4290
- Depreciation 2680
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- Total Overhead Cost 7739
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 actual level is 99 guests? Assume that the activity levels of 90 guests and 99 guests are within the same relevant range.