Langner Clinic uses client-visits as its measure of activity. During February, the clinic budgeted for 3,700 client-visits, but its actual level of activity was 3,740 client-visits. The clinic has provided the following data concerning the formulas used in its budgeting and its actual results for February:

Data used in budgeting:
Actual results for February:
-The administrative expenses in the planning budget for February would be closest to:
A)$4,970
B)$4,861
C)$4,914
D)$4,974

Question

Langner Clinic uses client-visits as its measure of activity. During February, the clinic budgeted for 3,700 client-visits, but its actual level of activity was 3,740 client-visits. The clinic has provided the following data concerning the formulas used in its budgeting and its actual results for February:

Data used in budgeting:

Actual results for February:

-The administrative expenses in the planning budget for February would be closest to:

Data used in budgeting:
 Actual results for February: 
-The administrative expenses in the planning budget for February would be closest to:
A)$4,970 
B)$4,861 
C)$4,914 
D)$4,974

Quizplus · Accepted Answer

Cost = Fixed cost per unit + Variable cost per unit F1F1F1S1F1F1F10 q
= $4,600 + $0.10 F1F1F1S1F1F1F10 3,700 = $4,970

Langner Clinic Uses Client-Visits as Its Measure of Activity