Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Caballes Clinic uses client-visits as its measure of activity. During November, the clinic budgeted for 2,700 client-visits, but its actual level of activity was 2,670

Caballes Clinic uses client-visits as its measure of activity. During November, the clinic budgeted for 2,700 client-visits, but its actual level of activity was 2,670 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 $42.30
Personnel expenses $23,000 $13.00
Medical supplies 850 4.40
Occupancy expenses 4,700 1.10
Administrative expenses

2,700

0.30

Total expenses

$31,250

$18.80

Actual results for November:

Revenue $114,009
Personnel expenses $21,678
Medical supplies $12,865
Occupancy expenses $7,904
Administrative expenses $6,331

The occupancy expenses in the flexible budget for November would be closest to:

a)$7,904

b)$3,204

c)$7,670

d)$7,637

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Management Audits For Excellence

Authors: Dorsey J. Talley

1st Edition

0873890396, 978-0873890397

More Books

Students also viewed these Accounting questions