Sharifi Hospital bases its budgets on patient-visits. The hospital\'s static bud

Question

Sharifi Hospital bases its budgets on patient-visits. The hospital's static budget for October appears beloye Budgeted number of patient-visits Budgeted variable overhead costs: 7,000 Laundry (e$7.60 Total variable overhead cost Budgeted fixed overhead costs: Supplies (e$4.60 per patient-visit)32,200 per patient-visit)53,299 85,400 51,400 84,900 136,300 $221,700 Wages and salaries Occupancy costs Total fixed overhead cost Total budgeted overhead cost The total overhead cost at an activity levei of 7700 patientvisits per month should be Multiple Choice ?Prex 23 of 25 EE? Next >

Explanation / Answer

Answer

Total Variable cost for 7700 patient visits = (85400/7000) x 7700 = $93,940 (A)

Total fixed cost for 7700 patient visits = $136,300 (B)

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