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Karmazyn Hospital bases its budgets on patient-visits. The hospital\'s static bu

ID: 2469910 • Letter: K

Question

Karmazyn Hospital bases its budgets on patient-visits. The hospital's static budget for October appears below:


84,480

171,600

107,830

207,660

$379,260


The total variable cost at the activity level of 8,900 patient-visits per month should be:

$171,600

$209,990

$207,660

$173,550

  Budgeted number of patient-visits 8,800   Budgeted variable costs:   Supplies (@ $9.90 per patient-visit) $ 87,120   Laundry (@ $9.60 per patient-visit)

84,480

  Total variable cost

171,600

  Budgeted fixed costs:   Wages and salaries 99,830   Occupancy costs

107,830

  Total fixed cost

207,660

  Total cost

$379,260

Explanation / Answer

The total variable cost at the activity level of 8,900 patient-visits per month should be=8,900*( Supplies (@ $9.90 per patient-visit)+ Laundry (@ $9.60 per patient-visit))=$173,550