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Federick Clinic uses client-visits as its measure of activity. During October, the clinic budgeted for 3,000 client-visits, but its actual level of activity was 3,040
Federick Clinic uses client-visits as its measure of activity. During October, the clinic budgeted for 3,000 client-visits, but its actual level of activity was 3,040 client-visits. The clinic has provided the following data concerning the formulas used in its budgeting and its actual results for October: Data used in budgeting:
Fixed element per month | Variable element per client-visit | |
Revenue | $51.20 | |
Personnel expenses | $36,600 | $18.10 |
Medical supplies | 1,000 | 6.80 |
Occupancy expenses | 12,100 | 1.70 |
Administrative expenses | 4,800 | 0.20 |
Total expenses | $54,500 | $26.80 |
Actual results for October:
Revenue | $158,578 |
Personnel expenses | $87,314 |
Medical supplies | $21,452 |
Occupancy expenses | $18,048 |
Administrative expenses | $5,248 |
The occupancy expenses in the flexible budget for October would be closest to:
$17,268
$18,289
$17,811
$17,200
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