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:

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

Based on the information given, we can calculate the personnel expenses for February by multiplying the number of hours worked by the hourly wage and adding any additional expenses. 
Personnel expenses = (580 hours * $82 per hour) + $5,620
Personnel expenses = $47,340
Therefore, the closest answer choice is B).

Labombard Clinic Uses Client-Visits as Its Measure of Activity