Jiminian Clinic uses client-visits as its measure of activity.During March, the clinic budgeted for 3, 700 client-visits, but its actual level of activity was 3, 660 client-visits.The clinic has provided the following data concerning the formulas used in its budgeting and its actual results for March: Data used in budgeting: Actual results for March: The medical supplies in the flexible budget for March would be closest to:
A)$18, 270
B)$18, 607
C)$18, 450
D)$19, 016

Question

Jiminian Clinic uses client-visits as its measure of activity.During March, the clinic budgeted for 3, 700 client-visits, but its actual level of activity was 3, 660 client-visits.The clinic has provided the following data concerning the formulas used in its budgeting and its actual results for March: Data used in budgeting:  Actual results for March:  The medical supplies in the flexible budget for March would be closest to:
A)$18, 270 
B)$18, 607 
C)$18, 450 
D)$19, 016

Quizplus · Accepted Answer

Cost = Fixed cost + (Variable cost per unit × q)
= $1, 800 + ($4.50 × 3, 660)= $18, 270

Jiminian Clinic Uses Client-Visits as Its Measure of Activity