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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
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$6,697
-
$6,890
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