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?
$50,700
$49,500
$50,000
$51,212
Variable medical expense should be charged to operating department = Actual employee in May*rate
= 1980*25
Variable medical expense should be charged to operating department = 49500
So answer is b) $49500
The medical services department of Fischer Company budgeted $25 of variable medical expenses per employee for...
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