Question
11) Ibsen Clinic uses client-visits as its measure of activity. During December, the clinic budgeted for 3,300 client-visits, but its actual level of activity was
11) Ibsen Clinic uses client-visits as its measure of activity. During December, the clinic budgeted for 3,300 client-visits, but its actual level of activity was 3,340 client-visits. The clinic has provided the following data concerning the formulas used in its budgeting and its actual results for December:
Data used in budgeting:
| Fixed Element per Month |
|
| Variable element per client-visit |
|
Revenue |
| - |
| $ | 40.00 |
|
|
|
|
|
|
Personnel expenses | $ | 32,400 |
| $ | 13.40 |
Medical supplies |
| 1,500 |
|
| 4.80 |
Occupancy expenses |
| 9,100 |
|
| 2.10 |
Administrative expenses |
| 6,700 |
|
| 0.40 |
Total expenses | $ | 49,700 |
| $ | 20.70 |
- |
Actual results for December:
|
|
|
|
|
Revenue | $ | 134,170 |
|
|
Personnel expenses | $ | 80,776 |
|
|
Medical supplies | $ | 17,302 |
|
|
Occupancy expenses | $ | 15,754 |
|
|
Administrative expenses | $ | 8,296 |
|
|
-
|
|
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