Chirico Clinic uses client-visits as its measure of activity.During February, the clinic budgeted for 2, 500 client-visits, but its actual level of activity was 2, 550 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)$68, 642
B)$70, 015
C)$69, 125
D)$68, 350

Question

Chirico Clinic uses client-visits as its measure of activity.During February, the clinic budgeted for 2, 500 client-visits, but its actual level of activity was 2, 550 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)$68, 642 
B)$70, 015 
C)$69, 125 
D)$68, 350

Quizplus · Accepted Answer

Cost = Fixed cost + (Variable cost per unit × q)
= $29, 600 + ($15.50 × 2, 500)= $68, 350

Chirico Clinic Uses Client-Visits as Its Measure of Activity