Application: Expense Forecasting

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Application: Expense Forecasting

Expense Forecasting Scenario
Your department has performed 20,000 procedures during the first six months (January–June) of 20X1. Spending during that period of time was $210,000 expense items and $1,200,000 expense items. Of those amounts, $50,000 of fixed expense money was spent on preparing Joint Commission survey. Volume is anticipated to be 10% higher in the second half of the year. On November 1st, two new procedure technicians will begin work. The salary and fringe benefit costs are $96,000/year. Based on the information provided, prepare an expense forecast .

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