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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 9,900 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 | 9,900 |
Budgeted variable overhead costs: | |
Supplies (@$6.40 per patient-visit) | $63,360 |
Laundry (@$6.10 per patient-visit) | 60,390 |
Total variable overhead cost | 123,750 |
Budgeted fixed overhead costs: | |
Wages and salaries | 81,800 |
Occupancy costs | 71,800 |
Total fixed overhead cost | 153,600 |
Total budgeted overhead cost | $277,350 |
The total overhead cost at an activity level of 12,100 patient-visits per month should be:
a. $304,850
b. $151,250
c. $277,350
d. $338,983
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