Caballes Clinic uses client-visits as its measure of activity. During November, the clinic budgeted for 3,100 client-visits, but its actual level of activity was 3,070 client-visits. The clinic has provided the following data concerning the formulas used in its budgeting and its actual results for November:

Data used in budgeting:
Actual results for November:
-The occupancy expenses in the flexible budget for November would be closest to:
A)$12,898
B)$13,090
C)$13,347
D)$12,940

Question

Caballes Clinic uses client-visits as its measure of activity. During November, the clinic budgeted for 3,100 client-visits, but its actual level of activity was 3,070 client-visits. The clinic has provided the following data concerning the formulas used in its budgeting and its actual results for November:

Data used in budgeting:

Actual results for November:

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

Data used in budgeting:
 Actual results for November: 
-The occupancy expenses in the flexible budget for November would be closest to:
A)$12,898 
B)$13,090 
C)$13,347 
D)$12,940

Quizplus · Accepted Answer

Cost = Fixed cost per unit + Variable cost per unit F1F1F1S1F1F1F10 q
= $8,600 + $1.40 F1F1F1S1F1F1F10 3,070 = $12,898

Caballes Clinic Uses Client-Visits as Its Measure of Activity