Description of this paper

Establishment in a converted 100-year-old mansion.

Description

solution


Question

Idlewild 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 4,290;Depreciation 2,680;Total overhead cost $7,739;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 99 guests? Assume that the activity levels of 90 guests and 99 guests are within the same relevant range.

 

Paper#27370 | Written in 18-Jul-2015

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