Rients Corporation is a service company that measures its output by the number of customers served. The company has provided the following fixed and variable cost estimates that it uses for budgeting purposes and the actual results of operations for October.

	Fixed Element per Month			Variable Element per Customer Served		Actual Total for October
Revenue				$	4,100	$	182,900
Employee salaries and wages	$	42,300		$	1,300	$	98,800
Travel expenses				$	700	$	30,500
Other expenses	$	31,500				$	31,900

When the company prepared its planning budget at the beginning of October, it assumed that 39 customers would have been served. However, 44 customers were actually served during October.

The spending variance for Other expenses for October would have been closest to:

Multiple Choice

• $3,625 U

• $3,625 F

• $400 F

• $400 U

Duprey Clinic uses client-visits as its measure of activity. During January, the clinic budgeted for 2,200 client-visits, but its actual level of activity was 2,150 client-visits. The clinic has provided the following data concerning the formulas used in its budgeting and its actual results for January:

Data used in budgeting:

	Fixed Element per Month			Variable element per client-visit
Revenue		-		$	58.40
Personnel expenses	$	33,500		$	18.00
Medical supplies		1,000			9.90
Occupancy expenses		9,300			2.20
Administrative expenses		5,300			0.40
Total expenses	$	49,100		$	30.50

Actual results for January:

Revenue	$	127,950
Personnel expenses	$	69,720
Medical supplies	$	23,125
Occupancy expenses	$	14,290
Administrative expenses	$	5,930

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

Garrison 16e Rechecks 2018-06-07

Multiple Choice

• $73,100

• $71,341

• $72,200

• $69,720

Duprey Clinic uses client-visits as its measure of activity. During January, the clinic budgeted for 2,200 client-visits, but its actual level of activity was 2,150 client-visits. The clinic has provided the following data concerning the formulas used in its budgeting and its actual results for January:

Data used in budgeting:

	Fixed Element per Month			Variable element per client-visit
Revenue		-		$	58.40
Personnel expenses	$	33,500		$	18.00
Medical supplies		1,000			9.90
Occupancy expenses		9,300			2.20
Administrative expenses		5,300			0.40
Total expenses	$	49,100		$	30.50

Actual results for January:

Revenue	$	127,950
Personnel expenses	$	69,720
Medical supplies	$	23,125
Occupancy expenses	$	14,290
Administrative expenses	$	5,930

The administrative expenses in the planning budget for January would be closest to:

Garrison 16e Rechecks 2018-06-07

Multiple Choice

• $6,068

• $5,930

• $6,160

• $6,180