Calculate the total overhead cost at an activity level


Placek Hospital bases its budgets on patient?visits. The hospital's static budget for October appears below:   
  
Budgeted number of patient?visits............................................ 6,800
Budgeted variable overhead costs:
Supplies (@$2.60 per patient?visit) ........................... $17,680
Laundry (@$5.60 per patient?visit).............................. 38,080
Total variable overhead cost.................................................... 55,760
Budgeted fixed overhead costs:
Wages and salaries ...................................................... 21,080
Occupancy costs........................................................... 44,880
Total fixds overhead cost......................................................... 65,960
Total budgeted overhead cost............................................. $121,720

The total overhead cost at an activity level of 7,700 patient?visits per month should be?

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Accounting Basics: Calculate the total overhead cost at an activity level
Reference No:- TGS0705511

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