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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 (@$4.20 per patient-visit) | $29,400 |
Laundry (@$7.20 per patient-visit) | 50,400 |
Total variable overhead cost | 79,800 |
Budgeted fixed overhead costs: | |
Wages and salaries | 50,400 |
Occupancy costs | 84,300 |
Total fixed overhead cost | 134,700 |
Total budgeted overhead cost | $214,500 |
The total overhead cost at an activity level of 7,700 patient-visits per month should be:
Multiple Choice
$235,950
$227,970
$222,480
$214,500
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