The medical services department of Fischer Company budgeted $31 of variable medical expenses per employee for May, based on 1,700 employees in operating departments. During May an average of 1,680 employees were employed in operating departments. Actual variable medical expenses totaled $53,700 for the month. How much variable medical expenses should be charged to operating departments at the end of May for performance evaluation purposes?

Question

Quizplus · Accepted Answer

The variable medical expenses should be charged based on the budgeted rate of $31 per employee and the actual number of employees, which is 1,680. Therefore, the calculation is $31 * 1,680 = $52,080.

The Medical Services Department of Fischer Company Budgeted $31 of Variable