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

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Accounting

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

Budgeted number of patient-visits 7,700
Budgeted variable overhead costs:
Supplies (@$6.00 per patient-visit) $46,200
Laundry (@$9.00 per patient-visit) 69,300
Total variable overhead cost 115,500
Budgeted fixed overhead costs:
Wages and salaries 54,900
Occupancy costs 87,000
Total fixed overhead cost 141,900
Total budgeted overhead cost $257,400

The total overhead cost at an activity level of 8,400 patient-visits per month should be:

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