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Capelli Hospital bases its budgets on patient-visits. The hospital's static budget for August appears below: Budgeted number of patient-visits 8,700 Budgeted variable costs: Supplies (@$9.80

Capelli Hospital bases its budgets on patient-visits. The hospital's static budget for August appears below:

Budgeted number of patient-visits 8,700
Budgeted variable costs:
Supplies (@$9.80 per patient-visit) $ 85,260
Laundry (@$9.50 per patient-visit) 82,650
Total variable cost 167,910
Budgeted fixed costs:
Wages and salaries 99,820
Occupancy costs 107,820
Total fixed cost 207,640
Total cost $ 375,550

The total variable cost at the activity level of 8,800 patient-visits per month should be:

Multiple Choice

  • $207,640

  • $167,910

  • $169,840

  • $209,970

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