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 net operating income in the flexible budget for November would be closest to:
A)$20,172
B)$13,870
C)$13,249
D)$20,568

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 net operating income in the flexible budget for November would be closest to:

Data used in budgeting:
 Actual results for November: 
-The net operating income in the flexible budget for November would be closest to:
A)$20,172 
B)$13,870 
C)$13,249 
D)$20,568

Quizplus · Accepted Answer

The net operating income in a flexible budget is calculated by adjusting the static budget for actual activity levels. The closest value to the calculated net operating income for November, based on the given options, is $13,249.

Caballes Clinic Uses Client-Visits as Its Measure of Activity