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:

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:

Quizplus · Accepted Answer

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 = $192,000
Variable Overhead Cost per Patient-visit = $5.50

Substituting the values and solving:

Total Overhead Cost = $192,000 + ($5.50 x 9,200)
= $192,000 + $50,600
= $242,600

Therefore, the closest option to the calculated total overhead cost is option C ($249,300). 11ea7998_5ca1_d1aa_911b_139dfaaa4021_TB2627_00_TB2627_00

Sharifi Hospital Bases Its Budgets on Patient-Visits