Capelli Hospital bases its budgets on patient-visits. The hospital's static budget for August appears below:
Budgeted number of patient-visits
8,900
Budgeted variable costs:
Supplies (@$10.00 per patient-visit)
$ 89,000
Laundry (@$9.70 per patient-visit)
86,330
Total variable cost
175,330
Budgeted fixed costs:
Wages and salaries
99,840
Occupancy costs
107,840
Total fixed cost
207,680
Total cost
$383,010
The total variable cost at the activity level of 9,000 patient-visits per month should be:
