Question

The accountant for Frederick Outpatient Care has provided its director with the following budget report for the month of September.

Frederick Outpatient Care Budget Report For the month ended September 30
	Budget	Actual
Number of patient visits:	2,060	2,350
Variable expenses:
Medical supplies	$36,800	$37,300
Lab supplies	$23,300	$27,100
Laundry	$6,850	$8,450
Total variable expenses	$66,950	$72,850
Fixed expenses:
Salaries and benefits	$45,600	$45,600
Insurance	$1,600	$1,600
Depreciation	$6,100	$6,100
Total fixed expenses	$53,300	$53,300
Total expenses	$120,250	$126,150

On a flexible budget report, what amount will be reported in the Budget column for Total Variable Expenses? (Round final answer to the nearest whole dollar, e.g., $123.)

		$76,375
		$63,860
		$58,688
		$83,106

Answer 1

Total variable expense as per flexible budget = (2,350 patient visit x $66,950)/2,060 patient visit

                                                                       = $76,375

Answer: $76,375