Answer:
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.
