Sharifi Hospital bases its budgets on patient-visits.The hospital's static budget for October appears below: The total overhead cost at an activity level of 9,200 patient-visits per month should be:

A) $260,360
B) $250,070
C) $249,300
D) $240,550

Question

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

The total overhead cost at an activity level of 9,200 patient-visits per month should be:

A) $260,360
B) $250,070
C) $249,300
D) $240,550

Madison Turner · Accepted Answer

Final Answer : C, Explanation :  The total overhead cost at an activity level of 9,200 patient-visits per month can be calculated using the formula:Total Overhead Cost = Fixed Overhead Cost + (Variable Overhead Cost per Unit x Activity Level)Using the given data:Fixed Overhead Cost = $192,000Variable Overhead Cost per Patient-visit = $5.50Substituting the values and solving:Total Overhead Cost = $192,000 + ($5.50 x 9,200)= $192,000 + $50,600= $242,600Therefore, the closest option to the calculated total overhead cost is option C ($249,300).

Sharifi Hospital bases its budgets on patient-visits.The hospital's static budget for October appears below: The total overhead cost at an activity level of 9,200 patient-visits per month should be:

A) $260,360
B) $250,070
C) $249,300
D) $240,550

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Learning Objectives

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Sharifi Hospital bases its budgets on patient-visits.The hospital's static budget for October appears below: The total overhead cost at an activity level of 9,200 patient-visits per month should be:A) $260,360B) $250,070C) $249,300D) $240,550

Definitions

Learning Objectives

Learning Objectives

Related questions

Sharifi Hospital bases its budgets on patient-visits.The hospital's static budget for October appears below: The total overhead cost at an activity level of 9,200 patient-visits per month should be:

A) $260,360
B) $250,070
C) $249,300
D) $240,550