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Hettinger Hospital bases its budgets on patient-visits. The hospital's static budget for March appears below: Budgeted number of patient-visits 8,900 Budgeted variable costs: Supplies (@
Hettinger Hospital bases its budgets on patient-visits. The hospital's static budget for March appears below:
Budgeted number of patient-visits | 8,900 |
Budgeted variable costs: | |
Supplies (@ $10.00 per patient-visit) | $ 89,000 |
Laundry (@ $9.70 per patient-visit) | 86,330 |
Total variable cost | 175,330 |
Budgeted fixed costs: | |
Wages and salaries | 99,840 |
Occupancy costs | 107,840 |
Total fixed cost | 207,680 |
Total cost | $383,010 |
The total variable cost at the activity level of 9,000 patient-visits per month should be:
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