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 cost171,600
Budgeted fixed costs: Wages and salaries 99,830 Occupancy costs107,830
Total fixed cost207,660
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
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