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Isadore Hospital bases its budgets on patient-visits. The hospital's static budget for July appears below: Budgeted number of patient-visits 7,700 Budgeted variable overhead costs: Supplies
Isadore Hospital bases its budgets on patient-visits. The hospital's static budget for July appears below:
Budgeted number of patient-visits | 7,700 |
Budgeted variable overhead costs: | |
Supplies (@$4.60 per guest-day) | $35,420 |
Laundry (@$7.20 per guest-day) | 55,440 |
Total variable overhead cost | 90,860 |
Budgeted fixed overhead costs: | |
Salaries | 46,200 |
Occupancy costs | 67,760 |
Total fixed overhead cost | 113,960 |
Total budgeted overhead cost | $204,820 |
Actual results for the month were:
Actual number of patient-visits | 7,800 |
Supplies | $38,250 |
Laundry | $61,240 |
Salaries | $46,190 |
Occupancy costs | $65,650 |
What is the variance for laundry costs in the flexible budget performance report for the month?
a) $5080 F
b) $5080 U
c) $5800 U
d) $5800 F
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