Wesolick Clinic uses client-visits as its measure of activity.During August, the clinic budgeted for 2, 900 client-visits, but its actual level of activity was 2, 870 client-visits.The clinic has provided the following data concerning the formulas used in its budgeting and its actual results for August: Data used in budgeting: Actual results for August: The medical supplies in the flexible budget for August would be closest to:
A)$17, 640
B)$17, 048
C)$17, 472
D)$16, 697

Question

Wesolick Clinic uses client-visits as its measure of activity.During August, the clinic budgeted for 2, 900 client-visits, but its actual level of activity was 2, 870 client-visits.The clinic has provided the following data concerning the formulas used in its budgeting and its actual results for August: Data used in budgeting:  Actual results for August:  The medical supplies in the flexible budget for August would be closest to:
A)$17, 640 
B)$17, 048 
C)$17, 472 
D)$16, 697

Quizplus · Accepted Answer

Cost = Fixed cost + (Variable cost per unit × q)
= $1, 400 + ($5.60 × 2, 870)= $17, 472

Wesolick Clinic Uses Client-Visits as Its Measure of Activity