Exam 2, Chapters 7,8,90 2 Capell Hospital bases its budgets on petilent-visits.

Question

Exam 2, Chapters 7,8,90 2 Capell Hospital bases its budgets on petilent-visits. The hospital's static budget for August oppears below Budgeted number of patient-visits 9,200 eted variable costS Supplies (6$9.30 per patient-visit) Laundry (es9.00 per patient-visit)82,800 points $85,560 8 orsisa Total variable cost Budgeted fixed costs Wages and salaries 168,360 99,720 107,720 207,440 $375,800 Occupancy costs Total fixed cost Total cost The total variable cost at the activity level of 9,300 patient-visits per month should be: Multiple Choice $207,440 Graw Hill

Explanation / Answer

Calculate variable cost on 9300 patient visit :

Total variable cost = (9300*9.30+9300*9) = 170190

so answer is c) $170,190

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