Caballes Clinic uses client-visits as its measure of activity. During November, the clinic budgeted for 3,100 client-visits, but its actual level of activity was 3,070 client-visits. The clinic has provided the following data concerning the formulas used in its budgeting and its actual results for November:

Data used in budgeting:
Actual results for November:
-The personnel expenses in the planning budget for November would be closest to:
A)$63,400
B)$66,600
C)$64,020
D)$66,300

Question

Caballes Clinic uses client-visits as its measure of activity. During November, the clinic budgeted for 3,100 client-visits, but its actual level of activity was 3,070 client-visits. The clinic has provided the following data concerning the formulas used in its budgeting and its actual results for November:

Data used in budgeting:

Actual results for November:

-The personnel expenses in the planning budget for November would be closest to:

Data used in budgeting:
 Actual results for November: 
-The personnel expenses in the planning budget for November would be closest to:
A)$63,400 
B)$66,600 
C)$64,020 
D)$66,300

Quizplus · Accepted Answer

Cost = Fixed cost per unit + Variable cost per unit F1F1F1S1F1F1F10 q
= $35,600 + $10 F1F1F1S1F1F1F10 3,100 = $66,600

Caballes Clinic Uses Client-Visits as Its Measure of Activity