Tennies Clinic uses client-visits as its measure of activity. During November, the clinic budgeted for 3,300 client-visits, but its actual level of activity was 3,290 client-visits. The clinic has provided the following data concerning the formulas used in its budgeting and its actual results for November:
Data used in budgeting:
Actual results for November:

-The medical supplies in the flexible budget for November would be closest to:
A) $20,340
B) $20,282
C) $21,008
D) $21,136

Question

Tennies Clinic uses client-visits as its measure of activity. During November, the clinic budgeted for 3,300 client-visits, but its actual level of activity was 3,290 client-visits. The clinic has provided the following data concerning the formulas used in its budgeting and its actual results for November:
Data used in budgeting:
  Actual results for November:
 
-The medical supplies in the flexible budget for November would be closest to:
A) $20,340 
B) $20,282 
C) $21,008 
D) $21,136

Quizplus · Accepted Answer

Cost = Fixed cost + (Variable cost per unit × q)
= $1,200 + ($5.80 × 3,290) = $20,282

Tennies Clinic Uses Client-Visits as Its Measure of Activity