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Activity cost behavior

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120 Professional Hrs 150 Professional Hrs Type of cost
Salaries
Sr. Accountant $2500 $2500 Fixed
Office assistant $1200 $1200 Fixed
Internet and software subscriptions $700 $850 Mixed
Consulting by Sr Partner $1200 $1500 Variable
Depreciation 2400 2400 Fixed
Supplies 905 1100 Mixed
Administration 500 500 Fixed
Rent 2000 2000 Fixed
Utilities 332 365 Mixed

The question is

Suppose the clinic averages 170 professional hours per month. How much would need to be charged per hour for the clinic to cover its costs?

Do I total up the costs and divide

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Solution Summary

The activity cost behaviors are examined.

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For fixed costs, cost associated will be the cost associated with ...

Solution provided by:
Gaurav Agarwal, MS
Education
  • BE, Bangalore University, India
  • MS, University of Wisconsin-Madison
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