Tuason Clinic uses client-visits as its measure of activity. During May, the clinic budgeted for 2,900 client-visits, but its actual level of activity was 2,930 client-visits. The clinic has provided the following data concerning the formulas used in its budgeting and its actual results for May:

Data used in budgeting:
Actual results for May:
-The occupancy expenses in the flexible budget for May would be closest to:
A)$17,718
B)$18,611
C)$18,086
D)$18,530

Question

Tuason Clinic uses client-visits as its measure of activity. During May, the clinic budgeted for 2,900 client-visits, but its actual level of activity was 2,930 client-visits. The clinic has provided the following data concerning the formulas used in its budgeting and its actual results for May:

Data used in budgeting:

Actual results for May:

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

Data used in budgeting:
 Actual results for May: 
-The occupancy expenses in the flexible budget for May would be closest to:
A)$17,718 
B)$18,611 
C)$18,086 
D)$18,530

Quizplus · Accepted Answer

Cost = Fixed cost per unit + Variable cost per unit F1F1F1S1F1F1F10 q
= $10,700 + $2.70 F1F1F1S1F1F1F10 2,930 = $18,611

Tuason Clinic Uses Client-Visits as Its Measure of Activity