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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 8,500 Budgeted variable costs: Supplies (@$9.60
Capelli Hospital bases its budgets on patient-visits. The hospital's static budget for August appears below:
Budgeted number of patient-visits | 8,500 | |
Budgeted variable costs: | ||
Supplies (@$9.60 per patient-visit) | $ | 81,600 |
Laundry (@$9.30 per patient-visit) | 79,050 | |
Total variable cost | 160,650 | |
Budgeted fixed costs: | ||
Wages and salaries | 99,800 | |
Occupancy costs | 107,800 | |
Total fixed cost | 207,600 | |
Total cost | $ | 368,250 |
The total variable cost at the activity level of 8,600 patient-visits per month should be:
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