Edington Clinic uses client-visits as its measure of activity. During September,

Question

Edington Clinic uses client-visits as its measure of activity. During September, the clinic budgeted for 2,800 client-visits, but its actual level of activity was 2,850 client-visits. The clinic has provided the following data concerning the formulas to be used in its budgeting for September:

references

36.

value:
2.00 points

MC Qu. 166 The personnel expenses in the planning...

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

Edington Clinic uses client-visits as its measure of activity. During September, the clinic budgeted for 2,800 client-visits, but its actual level of activity was 2,850 client-visits. The clinic has provided the following data concerning the formulas to be used in its budgeting for September:

Explanation / Answer

Hi,

Please find the detailed answer as follows:

Personnel Expenses = 19.60*2800 (Variable Element) + 31700 (Fixed Element) = 66420

Option D (66420) is the correct answer.

Thanks.

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