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Karmazyn Hospital bases its budgets on patient-visits. The hospital's static budget for October appears below:
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Budgeted number of patient-visits
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8,800
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Budgeted variable costs:
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Supplies (@ $8.90 per patient-visit)
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$ 78,320
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Laundry (@ $8.60 per patient-visit)
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75,680
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Total variable cost
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154,000
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Budgeted fixed costs:
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Wages and salaries
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99,680
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Occupancy costs
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107,680
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Total fixed cost
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207,360
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Total cost
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$361,360
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The total variable cost at the activity level of 8,900 patient-visits per month should be:
$209,690
$155,750
$207,360
$154,000