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.
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?
a. $7,793.90
b. $61,541.00
c. $8,512.90
d. $7,739.00