Activity level 90 guests
Variable overhead costs:
Supplies $ 234
Fixed overhead costs:
Salaries and wages 4,290
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.
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