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Gummer Hospital bases its budgets on patient-visits. The hospital's static budget for February appears below: Budgeted number of patient-visits 8,600 Budgeted variable overhead costs: Supplies
Gummer Hospital bases its budgets on patient-visits. The hospital's static budget for February appears below:
Budgeted number of patient-visits | 8,600 |
Budgeted variable overhead costs: | |
Supplies (@$5.10 per patient-visit) | $43,860 |
Laundry (@$4.80 per patient-visit) | 41,280 |
Total variable overhead cost | 85,140 |
Budgeted fixed overhead costs: | |
Wages and salaries | 79,200 |
Occupancy costs | 69,200 |
Total fixed overhead cost | 148,400 |
Total budgeted overhead cost | $233,540 |
The total overhead cost at an activity level of 10,800 patient-visits per month should be:
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