Gordon Hospital bases its budgets on patient-visits. Its static budget appears b
ID: 2481994 • Letter: G
Question
Gordon Hospital bases its budgets on patient-visits. Its static budget appears below:
Budgeted number of patient-visits
9,900
Total variable overhead costs
$129,690
Total fixed overhead costs
161,370
Total budgeted overhead cost
$291,060
The total variable overhead cost at an activity level of 10,800 patient-visits per month should be:
$118,882
$141,480
$266,805
$317,520
Budgeted number of patient-visits
9,900
Total variable overhead costs
$129,690
Total fixed overhead costs
161,370
Total budgeted overhead cost
$291,060
Explanation / Answer
Total variable overhead cost at an activity level of 10800 patient visits per month
= 129690*10800/9900
= $ 141480
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