1. UPMC Hospital at Robinson Township prepared its 2020 planning budget (static budget) by months and was approved in December 2019. The budget was prepared based on the expected patient-visits for each month. The hospital's static budget for April 2020 is as follow:

Budgeted number of patient-visits		7,600
Budgeted variable overhead costs:
Supplies (@$4.70 per patient-visit)…………….	$	35,720
Laundry (@$7.80 per patient-visit)…………….		59,280
Total variable overhead cost………………..		95,000
Budgeted fixed overhead costs:
Wages and salaries……………………………		156,000
Occupancy costs………………………………		227,726
Total fixed overhead cost……………………..		354,600
Total budgeted overhead costs…………	$	833,326

In March 2020, the hospital administration considers an increase in patient-visits for April 2020 due to Coronavirus; and expecting 9,200 patient-visits. You are the hospital financial manager and you were asked to prepare a flexible budget for the expected patient-visits for 9,200 patients. What would be the TOTAL BUDGETED OVEARHEAD COST for the flexible budget?   

Activity level	Per visit	7,600	9,200
Variable overhead costs
Supplies   ($)	4.70
Laundry   ($)	7.8
Total Variable Overhead Cost ($)	12.50
Budgeted Fixed Overhead Costs
Wages and salaries
Occupancy costs
Depreciation Costs
Total Fixed Overhead Costs
Total Budgeted Overhead Cost

Answer rating: 100% (QA)

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