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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

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