Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Capelli Hospital bases its budgets on patient-visits. The hospital's static budget for August appears below: Budgeted number of patient-visits 8,600 Budgeted variable costs: Supplies (@$9.70
Capelli Hospital bases its budgets on patient-visits. The hospital's static budget for August appears below:
Budgeted number of patient-visits | 8,600 | |
Budgeted variable costs: | ||
Supplies (@$9.70 per patient-visit) | $ | 83,420 |
Laundry (@$9.40 per patient-visit) | 80,840 | |
Total variable cost | 164,260 | |
Budgeted fixed costs: | ||
Wages and salaries | 99,810 | |
Occupancy costs | 107,810 | |
Total fixed cost | 207,620 | |
Total cost | $ | 371,880 |
The total variable cost at the activity level of 8,700 patient-visits per month should be:
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started