Diiorio Clinic uses client-visits as its measure of activity. During February, the clinic budgeted for 2,700 client-visits, but its actual level of activity was 2,750 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)$11,250
B)$11,160
C)$11,183
D)$10,780

Question

Diiorio Clinic uses client-visits as its measure of activity. During February, the clinic budgeted for 2,700 client-visits, but its actual level of activity was 2,750 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)$11,250 
B)$11,160 
C)$11,183 
D)$10,780

Quizplus · Accepted Answer

Cost = Fixed cost per unit + Variable cost per unit F1F1F1S1F1F1F10 q
= $6,300 + $1.80 F1F1F1S1F1F1F10 2,750 = $11,250

Diiorio Clinic Uses Client-Visits as Its Measure of Activity