Question

Sharifi hospital bases it's budget on patients visits. The hospitals static for October appears below. The total overhead cost at an activity level of 7,700 patient visits per month should be

Answer 1

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.