Question

Sharifi Hospital bases its budgets on patient-visits. The hospital's static budget for October appears below: 9,300 $ 50,220 78,120 128, 340 Budgeted number of patient-visits Budgeted variable overhead costs: Supplies (@$5.40 per patient-visit) Laundry (@$8.40 per patient-visit) Total variable overhead cost Budgeted fixed overhead costs: Wages and salaries Occupancy costs Total fixed overhead cost Total budgeted overhead cost 53,400 86,100 139,500 $267,840 The total overhead cost at an activity level of 10,000 patient-visits per month should be: Multiple Choice $288,000 10 0 0 0 $278,340 $277,500 $267,840

Answer 1

Calculation of overhead cost at an activity level of 10,000 patient visits per month
Variable overhead costs:
Supplies ( 10,000 x 5.40)	54,000
Laundry ( 10,000 x 8.40)	84,000
Total variable overhead costs	138,000
Fixed overhead costs:
Wages and salaries	53,400
Occupancy costs	86,100
Total fixed overhead costs	139,500
Total overhead costs	$277,500

Third option is correct option.

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