1. Wesolick Clinic uses client-visits as its measure of activity. During August, the clinic budgeted for 2,900 client-visits, but its actual level of activity was 2,870 client-visits. The clinic has provided the following data concerning the formulas used in its budgeting and its actual results for August: Data used in budgeting:

	Fixed element per month			Variable element per client-visit
Revenue				$	40.50
Personnel expenses	$	30,900		$	12.80
Medical supplies		1,400			5.60
Occupancy expenses		7,500			2.00
Administrative expenses		6,300			0.20
Total expenses	$	46,100		$	20.60

Actual results for August:

Revenue	$	120,375
Personnel expenses	$	65,916
Medical supplies	$	16,872
Occupancy expenses	$	13,200
Administrative expenses	$	6,974

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

• $6,874
• $6,974
• $7,047
• $6,880