The Medical Services Department of Bantam Company Budgeted $20 of Variable

Multiple Choice

The medical services department of Bantam Company budgeted $20 of variable medical expenses per employee for the year, based on 1,500 employees in the operating departments. During the year, an average of 1,200 employees were employed in operating departments. Actual variable medical expenses totaled $28,800 for the year. How much variable medical expenses should be charged to operating departments at year-end?

A) $28,800
B) $24,000
C) $23,040
D) $28,000