Reference no: EM132501287
Question 1: The company's variable overhead costs are driven by machine-hours. What would be the total budgeted overhead cost for next month if the activity level is 2,200 machine-hours rather than 2,300 machine-hours?
Sharifi Hospital bases its budgets on patient-visits. The hospital's static budget for October appears below:
Budgeted number of patient-visits: 8,400
Budgeted variable overhead costs:
- Supplies (@4.50 per patient-visit): $37,800
- Laundry (@7.50 per patient-visit): $63,000
Total Variable Overhead cost: $100,800
Budgeted fixed overhead costs:
Wages and salaries: $51,150
Occupancy costs: $84,750
Total Fixed Overhead cost: $135,900
Total Budgeted Overhead cost: $236,700
The total overhead cost at an activity level of 9,100 patient-visits per month should be ???: