Question
Ohme Framing's cost formula for its supplies cost is $1,620 per month plus $13 per frame. For the month of April, the company planned for
Ohme Framing's cost formula for its supplies cost is $1,620 per month plus $13 per frame. For the month of April, the company planned for activity of 882 frames, but the actual level of activity was 878 frames. The actual supplies cost for the month was $13,500. The supplies cost in the flexible budget for April would be closest to:
$13,086$13,500$13,034$13,027
Zelenka Clinic uses client-visits as its measure of activity. During June, the clinic budgeted for 2,700 client-visits, but its actual level of activity was 2,710 client-visits. The clinic has provided the following data concerning the formulas to be used in its budgeting for June:
Fixed element per month | Variable element per client-visit | |||||
Revenue | $ | 47.80 | ||||
Personnel expenses | $ | 32,300 | $ | 15.50 | ||
Medical supplies | 1,700 | 6.20 | ||||
Occupancy expenses | 10,800 | 1.40 | ||||
Administrative expenses | 5,400 | 0.10 | ||||
Total expenses | $ | 50,200 | $ | 23.20 |
The administrative expenses in the planning budget for June would be closest to:
$5,671
$5,511$5,531$5,670Step by Step Solution
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