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Guareno Clinic uses client-visits as its measure of activity. During December, the clinic budgeted for 2,500 client-visits, but its actual level of activity was 2,450
Guareno Clinic uses client-visits as its measure of activity. During December, the clinic budgeted for 2,500 client-visits, but its actual level of activity was 2,450 client-visits. The clinic has provided the following data concerning the formulas used in its budgeting and its actual results for December:
Data used in budgeting:
Fixed element per month | Variable element per client-visit | ||||
Revenue | - | $ | 45.20 | ||
Personnel expenses | $ | 34,300 | $ | 13.30 | |
Medical supplies | 1,600 | 5.40 | |||
Occupancy expenses | 10,000 | 1.80 | |||
Administrative expenses | 3,800 | 0.20 | |||
Total expenses | $ | 49,700 | $ | 20.70 | |
Actual results for December:
Revenue | $ | 108,650 | |
Personnel expenses | $ | 65,755 | |
Medical supplies | $ | 14,380 | |
Occupancy expenses | $ | 14,000 | |
Administrative expenses | $ | 4,210 | |
The occupancy expenses in the flexible budget for December would be closest to:
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