Asked by Juliana Gallego on May 01, 2024
Verified
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?
A) $53,700
B) $52,080
C) $52,700
D) $54,332
Variable Medical Expenses
Costs in healthcare that vary depending on the number and types of services used.
Performance Evaluation
The process of assessing the performance of an individual, group, or entity against established objectives or criteria.
Operating Departments
Departments in a company directly involved in its core business activities, contributing to the production of its goods or services.
- Calculate and consider the impact of genuine versus planned costs and operations on the fiscal responsibilities of departments.
- Investigate the importance of service departments within a corporation and the approach used to allocate their expenditures to the functioning departments.
Verified Answer
Learning Objectives
- Calculate and consider the impact of genuine versus planned costs and operations on the fiscal responsibilities of departments.
- Investigate the importance of service departments within a corporation and the approach used to allocate their expenditures to the functioning departments.
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