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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
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$79,809
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$80,776
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