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Hettinger Hospital bases its budgets on patient-visits. The hospital\'s static b

ID: 2577214 • Letter: H

Question

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


The total cost at the activity level of 7,300 patient-visits per month should be:

$194,200

$201,480

$193,430

$187,680

Budgeted number of patient-visits 6,800 Budgeted variable costs:   Supplies (@ $4.80 per patient-visit) $32,640   Laundry (@ $6.70 per patient-visit)    45,560 Total variable cost      78,200 Budgeted fixed costs:   Wages and salaries 42,160 Occupancy costs    67,320 Total fixed cost   109,480 Total cost $187,680

Explanation / Answer

Total cost = 193,430.

Budgeted number of patient visits 7,300 Budgeted variable costs : Supplies (@ $4.8 per patient-visit) 35,040 Laundry (@ $6.7 per patient visit) 48,910 Total variable cost 83,950 Budgeted fixed costs : Wages and salaries 42,160 Occupancy costs 67,320 Total fixed cost 109,480 Total cost 193,430