Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Spohn Clinic uses client-visits as its measure of activity. During February, the clinic budgeted for 3,400 client-visits, but its actual level of activity was 3,370

Spohn Clinic uses client-visits as its measure of activity. During February, the clinic budgeted for 3,400 client-visits, but its actual level of activity was 3,370 client-visits. The clinic has provided the following data concerning the formulas to be used in its budgeting for February:

Fixed Element per Month Variable element per client-visit
Revenue - $ 28.10
Personnel expenses $ 26,100 $ 7.70
Medical supplies 900 5.10
Occupancy expenses 5,600 0.80
Administrative expenses 4,300 0.40
Total expenses $ 36,900 $ 14.00

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

$5,648

$5,466

$5,660

$5,418

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Auditing IT Infrastructures For Compliance

Authors: Martin Weiss, Michael G. Solomon

2nd Edition

1284090701, 978-1284090703

More Books

Students also viewed these Accounting questions

Question

Stimulates gallbladder to release bile?

Answered: 1 week ago

Question

Activity Immediate Predecessors C.D. D

Answered: 1 week ago