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Smiles Dental Practice has been examining its overhead cost control procedures. The level of activity in the facility is measured by the number of patients
Smiles Dental Practice has been examining its overhead cost control procedures.
The level of activity in the facility is measured by the number of patients treated in the budget
period.
The budget for the current year is patients. Actual patients is expected to be met or
even exceeded.
During the first months patients were treated. Assume the average number of patients
per month remains constant.
The actual variable overhead costs incurred during this fourmonth period are as follows:
Expense
Staffing
Power
Supplies
Other
Total
The practice accountant believes that the variable overhead costs will be incurred at the same
rate during the remaining months.
Fixed overheads are budgeted for the whole year as follows:
Expense
Supervision
Depreciationfinance
Other
Total
Present an overheads budget for the remaining eightmonth period showing each expense. What is the total overhead cost for each patient that would be incorporated into any statistics?
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