Papenfuss Family Inn is a bed and breakfast establishment in a converted 100-year-old mansion....

Question:

Papenfuss 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 level86 guests
Variable overhead costs:
Supplies$86
Laundry$507.40
Fixed overhead costs:
Utilities$340
Salaries and wages$4,790
Depreciation$2,620
Total overhead cost$8,343.40

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 76 guests?

a. $52,848.40

b. $8,343.40

c. $8,274.40

d. $7,373.24

Manufacturing Overhead Cost:

Manufacturing overhead cost can be defined as an indirect expense that goes into the manufacturing process other than the direct expenses. It includes factory rent, maintenance, insurance, salary, power, etc.

Answer and Explanation: 1

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The total budgeted overhead cost for a month is $8,274.40 (c)

The calculation is shown below.

{eq}Total \ variable \ overhead \ cost \ for \ 76 \...

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Manufacturing Overhead: Definition, Formula & Examples

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Chapter 22 / Lesson 35
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Learn about manufacturing overhead. Understand what overhead is, learn the manufacturing overhead formula, and see how to calculate manufacturing overhead.


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