Question
XYZ Hospital bases its budgets on patient-visits. The hospital's static budget for September appears below: Budgeted number of patient-visits............ 10,000 Budgeted variable overhead costs: Supplies
XYZ Hospital bases its budgets on patient-visits. The hospital's static budget for September appears below:
| Budgeted number of patient-visits............ | 10,000 |
| Budgeted variable overhead costs: |
|
| Supplies (@ $2.40 per patient-visit)...... | $24,000 |
| Laundry (@ $1.15 per patient-visit)....... | 11,500 |
| Total variable overhead cost..................... | 35,500 |
| Budgeted fixed overhead costs: |
|
| Salaries................................................... | 42,000 |
| Occupancy costs..................................... | 17,500 |
| Total fixed overhead cost.......................... | 59,500 |
|
Total budgeted overhead cost.................... | $72,270 |
Actual results for the month were:
| Actual number of patient-visits................. | 10,200 |
| Supplies..................................................... | $24,040 |
| Laundry..................................................... | $13,000 |
| Salaries...................................................... | $43,980 |
| Occupancy costs........................................ | $17,060 |
Required:
Prepare a flexible budget performance report in good form.
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