Answered step by step
Verified Expert Solution
Question
1 Approved Answer
College Hospital bases its budgets on patient-visits. The hospital's static or planning budget for August appears below: Budgeted number of patient-visits 8,400 Budgeted variable costs:
College Hospital bases its budgets on patient-visits. The hospital's static or planning budget for August appears below:
Budgeted number of patient-visits | 8,400 | |
Budgeted variable costs: | ||
Supplies (@$8.50 per patient-visit) | $ | 71,400 |
Laundry (@$8.20 per patient-visit) | 68,880 | |
Total variable cost | 140,280 | |
Budgeted fixed costs: | ||
Wages and salaries | 99,640 | |
Occupancy costs | 107,640 | |
Total fixed cost | 207,280 | |
Total cost | $ | 347,560 |
The total variable cost at the activity level of 8,500 patient-visits per month should be:
Multiple Choice
-
$141,950
-
$207,280
-
$209,610
-
$140,280
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