Question

High Point Clinic is projecting 50,000 visits in 2019. The clinic uses 0.5 hours of labor per visit at a cost of $30 per hour and 1.5 units of supplies per visit at a cost of $2 per unit. What is the clinic's budgeted variable costs for 2019?

A. 1,100,000
B. 1,250,000
C. 1,600,000
D. 900,000

Answer 1

The budgeted variable costs for High Point Clinic in 2019 are calculated by adding the total labor costs and supply costs together, which results in $900,000.

Step-by-step explanation:

To calculate the budgeted variable costs for High Point Clinic in 2019, we consider both labor and supply costs associated with the projected 50,000 visits. First, we need to calculate the total labor cost by multiplying the number of visits (50,000) by the hours of labor per visit (0.5 hours) and then by the cost of labor per hour ($30). This calculation gives us $750,000. Next, we calculate the supply cost by multiplying the number of visits (50,000) by the units of supplies needed per visit (1.5 units) and then by the cost per unit of supply ($2), resulting in $150,000. These two figures are then added together to give the total budgeted variable costs for 2019.

Total labor cost = 50,000 visits × 0.5 hours/visit × $30/hour = $750,000

Total supply cost = 50,000 visits × 1.5 units/visit × $2/unit = $150,000
Budgeted variable costs = Total labor cost + Total supply cost
Budgeted variable costs = $750,000 + $150,000 = $900,000

Answer 2

The answer is D, bc there is 50,000 people each on needs 30 min which is 1,500,000 mins which is 25,000 hours each hour is $30 which is 750,000 and each unit of supplies pre visit is $2.50 multiply that by 50,000 which is
$125,000 in total that would be $750,000 + $125,000 =$875,000 but is a budget so you need to have some money to keep your business running you don’t want to have $0 so they would have $900,000 for there budget

Answer: $900,000