Parisi Clinic uses client-visits as its measure of activity. During March, the clinic budgeted for 2,300 client-visits, but its actual level of activity was 2,350 client-visits. The clinic has provided the following data concerning the formulas to be used in its budgeting:
-The occupancy expenses in the flexible budget for March would be closest to:
A)$14,510
B)$15,370
C)$15,147
D)$15,515

Question

Parisi Clinic uses client-visits as its measure of activity. During March, the clinic budgeted for 2,300 client-visits, but its actual level of activity was 2,350 client-visits. The clinic has provided the following data concerning the formulas to be used in its budgeting: 
-The occupancy expenses in the flexible budget for March would be closest to:
A)$14,510 
B)$15,370 
C)$15,147 
D)$15,515

Quizplus · Accepted Answer

Cost = Fixed cost per unit + Variable cost per unit F1F1F1S1F1F1F10 q
= $8,700 + $2.90 F1F1F1S1F1F1F10 2,350 = $15,515

Parisi Clinic Uses Client-Visits as Its Measure of Activity