Asked by Mahjabin Muntha on Jun 12, 2024
Verified
The medical services department of Fischer Company budgeted $25 of variable medical expenses per employee for May, based on 2,000 employees in operating departments. During May an average of 1,980 employees were employed in operating departments. Actual variable medical expenses totaled $50,700 for the month. How much variable medical expenses should be charged to operating departments at the end of May for performance evaluation purposes?
A) $50,700
B) $49,500
C) $50,000
D) $51,212
Variable Medical Expenses
Costs associated with medical care that vary with the level of services used by a patient.
Performance Evaluation
The process of assessing the effectiveness, efficiency, and achievements of an employee, department, or organization against predetermined benchmarks or objectives.
Operating Departments
Specific areas within a business that are responsible for certain operations related to the production of goods or delivery of services.
- Analyze and interpret the significance of actual versus budgeted expenditures and actions on departmental expenses.
- Analyze the significance of service departments in an enterprise and how their financial burdens are apportioned to the active departments.
Verified Answer
Learning Objectives
- Analyze and interpret the significance of actual versus budgeted expenditures and actions on departmental expenses.
- Analyze the significance of service departments in an enterprise and how their financial burdens are apportioned to the active departments.
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