College Hospital bases its budgets on patient-visits. The hospital's static or planning budget for August...
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Accounting
College Hospital bases its budgets on patient-visits. The hospital's static or planning budget for August appears below:
| Budgeted number of patient-visits | 8,000 | |
| Budgeted variable costs: | ||
| Supplies (@$8.10 per patient-visit) | $ | 64,800 |
| Laundry (@$7.80 per patient-visit) | 62,400 | |
| Total variable cost | 127,200 | |
| Budgeted fixed costs: | ||
| Wages and salaries | 99,600 | |
| Occupancy costs | 107,600 | |
| Total fixed cost | 207,200 | |
| Total cost | $ | 334,400 |
The total variable cost at the activity level of 8,100 patient-visits per month should be:
Multiple Choice
$209,530
$128,790
$127,200
$207,200
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