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Ibsen Clinic uses client-visits as its measure of activity. During December, the clinic budgeted for 3,300 client-visits, but its actual level of activity was 3,340

Ibsen Clinic uses client-visits as its measure of activity. During December, the clinic budgeted for 3,300 client-visits, but its actual level of activity was 3,340 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 - $ 40.00
Personnel expenses $ 32,400 $ 13.40
Medical supplies 1,500 4.80
Occupancy expenses 9,100 2.10
Administrative expenses 6,700 0.40
Total expenses $ 49,700 $ 20.70

Actual results for December:

Revenue $ 134,170
Personnel expenses $ 80,776
Medical supplies $ 17,302
Occupancy expenses $ 15,754
Administrative expenses $ 8,296

The personnel expenses in the planning budget for December would be closest to:

Multiple Choice

  • $76,620

  • $77,156

  • $79,809

  • $80,776

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