Langner Clinic uses client-visits as its measure of activity. During February, the clinic budgeted for 3,700 client-visits, but its actual level of activity was 3,740 client-visits. The clinic has provided the following data concerning the formulas used in its budgeting and its actual results for February:

Data used in budgeting:
Actual results for February:
-The occupancy expenses in the flexible budget for February would be closest to:
A)$11,183
B)$11,426
C)$11,270
D)$11,314

Question

Langner Clinic uses client-visits as its measure of activity. During February, the clinic budgeted for 3,700 client-visits, but its actual level of activity was 3,740 client-visits. The clinic has provided the following data concerning the formulas used in its budgeting and its actual results for February:

Data used in budgeting:

Actual results for February:

-The occupancy expenses in the flexible budget for February would be closest to:

Data used in budgeting:
 Actual results for February: 
-The occupancy expenses in the flexible budget for February would be closest to:
A)$11,183 
B)$11,426 
C)$11,270 
D)$11,314

Quizplus · Accepted Answer

Cost = Fixed cost per unit + Variable cost per unit F1F1F1S1F1F1F10 q
= $7,200 + $1.10 F1F1F1S1F1F1F10 3,740 = $11,314

Langner Clinic Uses Client-Visits as Its Measure of Activity