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

-The total variable cost at the activity level of 7,200 patient-visits per month should be:
A)$82,800
B)$78,200
C)$109,480
D)$115,920

Question

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

-The total variable cost at the activity level of 7,200 patient-visits per month should be:
A)$82,800 
B)$78,200 
C)$109,480 
D)$115,920

Quizplus · Accepted Answer

The total variable cost is calculated by multiplying the variable cost per patient-visit by the number of patient-visits. If $11.50 is the variable cost per patient-visit, then 7,200 patient-visits would result in a total variable cost of $82,800 (7,200 x $11.50).

Hettinger Hospital Bases Its Budgets on Patient-Visits