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

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

Place Order
Budgeted number of patient-visits 7,000
Budgeted variable overhead costs:
Supplies (@$5.50 per patient-visit) $ 38,500
Laundry (@$8.50 per patient-visit) 59,500
Total variable overhead cost 98,000
Budgeted fixed overhead costs:
Wages and salaries 53,650
Occupancy costs 86,250
Total fixed overhead cost 139,900
Total budgeted overhead cost $ 237,900

The total overhead cost at an activity level of 7,700
patient-visits per month should be:

Multiple Choice

  • $261,690

  • $251,890

  • $247,700

  • $237,900