Labombard Clinic uses client-visits as its measure of activity.During February, the clinic budgeted for 3, 600 client-visits, but its actual level of activity was 3, 650 client-visits.The clinic has provided the following data concerning the formulas used in its budgeting and its actual results for February: Data used in budgeting: Actual results for February: The personnel expenses in the planning budget for February would be closest to:
A)$47, 635
B)$47, 340
C)$47, 075
D)$46, 430

Question

Labombard Clinic uses client-visits as its measure of activity.During February, the clinic budgeted for 3, 600 client-visits, but its actual level of activity was 3, 650 client-visits.The clinic has provided the following data concerning the formulas used in its budgeting and its actual results for February: Data used in budgeting:  Actual results for February:  The personnel expenses in the planning budget for February would be closest to:
A)$47, 635 
B)$47, 340 
C)$47, 075 
D)$46, 430

Quizplus · Accepted Answer

Cost = Fixed cost + (Variable cost per unit × q)
= $26, 100 + ($5.90 × 3, 600)= $47, 340

Labombard Clinic Uses Client-Visits as Its Measure of Activity