Gummer Hospital bases its budgets on patient-visits. The hospital\'s static budg
ID: 2380430 • Letter: G
Question
Gummer Hospital bases its budgets on patient-visits. The hospital's static budget for February appears below:
9,000
46,800
96,300
70,000
150,000
$246,300
Budgeted number of patient-visits9,000
Budgeted variable overhead costs: Supplies (@$5.50 per patient-visit) $49,500 Laundry (@$5.20 per patient-visit)46,800
Total variable overhead cost96,300
Budgeted fixed overhead costs: Wages and salaries 80,000 Occupancy costs70,000
Total fixed overhead cost150,000
Total budgeted overhead cost$246,300
Explanation / Answer
The total overhead cost at an activity level of 11,200 patient-visits per month
= 11200 (5.20 + 5.5) + 150000 = $269840
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