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Sharifi Hospital bases its budgets on patient-visits. The hospital's static budget for October appears below: Budgeted number of patient-visits 7,000 Budgeted variable overhead costs: Supplies
Sharifi Hospital bases its budgets on patient-visits. The hospital's static budget for October appears below:
Budgeted number of patient-visits | 7,000 | |
Budgeted variable overhead costs: | ||
Supplies (@$5.00 per patient-visit) | $ | 35,000 |
Laundry (@$8.00 per patient-visit) | 56,000 | |
Total variable overhead cost | 91,000 | |
Budgeted fixed overhead costs: | ||
Wages and salaries | 52,400 | |
Occupancy costs | 85,500 | |
Total fixed overhead cost | 137,900 | |
Total budgeted overhead cost | $ | 228,900 |
The total overhead cost at an activity level of 7,700 patient-visits per month should be:
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