Gotthelf Clinic uses client-visits as its measure of activity. During December, the clinic budgeted for 2,500 client-visits, but its actual level of activity was 2,480 client-visits. The clinic has provided the following data concerning the formulas used in its budgeting and its actual results for December:

Data used in budgeting:
Actual results for December:
-The administrative expenses in the planning budget for December would be closest to:
A)$5,392
B)$5,173
C)$5,400
D)$5,132

Question

Gotthelf Clinic uses client-visits as its measure of activity. During December, the clinic budgeted for 2,500 client-visits, but its actual level of activity was 2,480 client-visits. The clinic has provided the following data concerning the formulas used in its budgeting and its actual results for December:

Data used in budgeting:

Actual results for December:

-The administrative expenses in the planning budget for December would be closest to:

Data used in budgeting:
 Actual results for December: 
-The administrative expenses in the planning budget for December would be closest to:
A)$5,392 
B)$5,173 
C)$5,400 
D)$5,132

Quizplus · Accepted Answer

Cost = Fixed cost per unit + Variable cost per unit F1F1F1S1F1F1F10 q
= $4,400 + $0.40 F1F1F1S1F1F1F10 2,500 = $5,400

Gotthelf Clinic Uses Client-Visits as Its Measure of Activity