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