Question - Marchi 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: 65 guests
Variable overhead costs:
Supplies..................$156
Laundry....................364
Fixed overhead costs:
Utilities...................250
Salaries and wages........4,480
Depreciation..............1,330
Total overhead cost.........6,580
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 70 guests?
A) $42,460.00
B) $6,580.00
C) $7,086.15
D) $6,620.00