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College Hospital bases its budgets on patient-visits. The hospital's static or planning budget for August appears below:
| | | |
| Budgeted number of patient-visits | | 8,000 |
| Budgeted variable costs: | | |
| Supplies (@$8.10 per patient-visit) | $ | 64,800 |
| Laundry (@$7.80 per patient-visit) | | 62,400 |
| Total variable cost | | 127,200 |
| Budgeted fixed costs: | | |
| Wages and salaries | | 99,600 |
| Occupancy costs | | 107,600 |
| Total fixed cost | | 207,200 |
| Total cost | $ | 334,400 |
| |
The total variable cost at the activity level of 8,100 patient-visits per month should be:
Multiple Choice
$209,530
$128,790
$127,200
$207,200
Answer & Explanation
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