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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 6,800 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 | 6,800 |
Budgeted variable costs: | |
Supplies (@ $4.80 per patient-visit) | $32,640 |
Laundry (@ $6.70 per patient-visit) | 45,560 |
Total variable cost | 78,200 |
Budgeted fixed costs: | |
Wages and salaries | 42,160 |
Occupancy costs | 67,320 |
Total fixed cost | 109,480 |
Total cost | $187,680 |
The total cost at the activity level of 7,300 patient-visits per month should be:
$194,200 | ||
$201,480 | ||
$193,430 | ||
$187,680 |
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