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Total budgeted overhead cost for a month

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. $6,620.00

c. $7,086.15

d. $6,580.00

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Solution Preview :

Prepared by a verified Expert

Accounting Basics: Total budgeted overhead cost for a month

Reference No:- TGS01620130

Have a Question? (oR Write a Review)

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Solution Preview :

Prepared by a verified Expert

Accounting Basics: Total budgeted overhead cost for a month

Reference No:- TGS01620130

Recent Questions Asked Accounting Basics

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