Federick Clinic uses client-visits as its measure of activity.During October, the clinic budgeted for 3, 000 client-visits, but its actual level of activity was 3, 040 client-visits.The clinic has provided the following data concerning the formulas used in its budgeting and its actual results for October: Data used in budgeting: Actual results for October: The personnel expenses in the planning budget for October would be closest to:
A)$91, 624
B)$87, 314
C)$86, 165
D)$90, 900

Question

Federick Clinic uses client-visits as its measure of activity.During October, the clinic budgeted for 3, 000 client-visits, but its actual level of activity was 3, 040 client-visits.The clinic has provided the following data concerning the formulas used in its budgeting and its actual results for October: Data used in budgeting:  Actual results for October:  The personnel expenses in the planning budget for October would be closest to:
A)$91, 624 
B)$87, 314 
C)$86, 165 
D)$90, 900

Quizplus · Accepted Answer

Cost = Fixed cost + (Variable cost per unit × q)
= $36, 600 + ($18.10 × 3, 000)= $90, 900

Federick Clinic Uses Client-Visits as Its Measure of Activity