Question
Caballes Clinic uses client-visits as its measure of activity. During November, the clinic budgeted for 3,600 client-visits, but its actual level of activity was 3,570
Caballes Clinic uses client-visits as its measure of activity. During November, the clinic budgeted for 3,600 client-visits, but its actual level of activity was 3,570 client-visits. The clinic has provided the following data concerning the formulas used in its budgeting and its actual results for November: Data used in budgeting: Fixed element per month Variable element per client-visit Revenue $51.30 Personnel expenses $26,150 $10.00 Medical supplies 1,075 5.40 Occupancy expenses 5,600 1.40 Administrative expenses 3,600 0.30 Total expenses $36,425 $17.10 Actual results for November: Revenue $184,569 Personnel expenses $24,375 Medical supplies $20,710 Occupancy expenses $10,955 Administrative expenses $8,131 The occupancy expenses in the flexible budget for November would be closest to: $10,598 $10,955 $10,640 $5,355
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