Gummer Hospital bases its budgets on patient-visits. The hospital\'s static budget for February appears below: 8,600 41,280 85,140 69,200 148,400 $233,540 The total overhead cost at an activity level of 10,800 patient-visits per month should be: Solution Total overhead cost at an activity level of 10,800 patient-visits per month=Total Variable Cost + Fixed Cost = 10800*(5.10+4.80)+148400=255320. .

1. Gummer Hospital bases its budgets on patient-visits. The hospital's static budget for February
appears below:
8,600
41,280
85,140
69,200
148,400
$233,540
The total overhead cost at an activity level of 10,800 patient-visits per month should be:
Budgeted number of patient-visits 8,600
Budgeted variable overhead costs:
Supplies (@$5.10 per patient-visit) $43,860
Laundry (@$4.80 per patient-visit) 41,280
Total variable overhead cost 85,140
Budgeted fixed overhead costs:
Wages and salaries 79,200
Occupancy costs 69,200
Total fixed overhead cost 148,400
Total budgeted overhead cost $233,540
Solution
Total overhead cost at an activity level of 10,800 patient-visits per month=Total Variable Cost +
Fixed Cost = 10800*(5.10+4.80)+148400=255320.