Problem: Sharifi Hospital basis 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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8,500
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Budgeted variable overhead costs:
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|
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Supplies (@$4.70 per patient-visit)
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$39,950
|
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Laundry (@$7.80 per patient-visit)
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66,300
|
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Total variable overhead cost
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106,250
|
|
Budgeted fixed overhead costs:
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|
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Wages and salaries
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50,150
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Occupancy costs
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84,150
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Total fixed overhead cost
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134,300
|
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Total budgeted overhead cost
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$240,550
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The total overhead cost at an activity level of 9,200 patient visits per month should be?