Mongelli Family Inn Is a Bed and Breakfast Establishment in a Converted

Mongelli 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:
$\begin{array}{|l|r|}\hline \text { Activity level } & \text { 90 guests } \\\hline \text { Variable overhead costs: } & \\\hline \text { Supplies } & \$ 234\\\hline \text { Laundry } & 315 \\\hline \text { Fixed overhead costs: } & \\\hline \text { Utilities } &220 \\\hline \text { Salaries and wages } &4,290 \\\hline \text { Depreciation } & 2,680 \\\hline \text { Total overhead cost } &\$ 7,739 \\\hline\end{array}$
The Inn's variable overhead costs are driven by the number of guests.
Assuming that the activity levels of 90 guests and 99 guests are within the same relevant range and rounding to the nearest dollar,what would be the total budgeted overhead cost for a month if the activity level is 99 guests?

A) $7,794.
B) $61,541.
C) $8,513.
D) $7,739.

Correct Answer:

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