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Sharifi Hospital bases its budgets on patient-visits. The hospital's static budget for October appears below:
| | | |
| Budgeted number of patient-visits | | 7,000 |
| Budgeted variable overhead costs: | | |
| Supplies (@$5.30 per patient-visit) | $ | 37,100 |
| Laundry (@$8.30 per patient-visit) | | 58,100 |
| Total variable overhead cost | | 95,200 |
| Budgeted fixed overhead costs: | | |
| Wages and salaries | | 53,150 |
| Occupancy costs | | 85,950 |
| Total fixed overhead cost | | 139,100 |
| Total budgeted overhead cost | $ | 234,300 |
| |
The total overhead cost at an activity level of 7,700 patient-visits per month should be:
Multiple Choice
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$234,300
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$243,820
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$248,210
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$257,730
Answer & Explanation
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