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ennies Clinic uses client-visits as its measure of activity. During November, the clinic budgeted for 3,300 client-visits, but its actual level of activity was 3,290

ennies Clinic uses client-visits as its measure of activity. During November, the clinic budgeted for 3,300 client-visits, but its actual level of activity was 3,290 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 - $ 35.40
Personnel expenses $ 29,500 $ 10.40
Medical supplies 1,200 5.80
Occupancy expenses 7,600 1.90
Administrative expenses 5,900 0.30
Total expenses $ 44,200 $ 18.40

Actual results for November:

Revenue $ 116,656
Personnel expenses $ 63,686
Medical supplies $ 21,072
Occupancy expenses $ 13,371
Administrative expenses $ 6,677

The administrative expenses in the planning budget for November would be closest to:

Multiple Choice

  • $6,887

  • $6,677

  • $6,697

  • $6,890

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