Gotthelf Clinic uses client-visits as its measure of activity. During December, the clinic budgeted for 2,500 client-visits, but its actual level of activity was 2,480 client-visits. The clinic has provided the following data concerning the formulas used in its budgeting and its actual results for December:

Data used in budgeting:
Actual results for December:
-The medical supplies in the flexible budget for December would be closest to:
A)$23,696
B)$22,650
C)$23,318
D)$22,476

Question

Gotthelf Clinic uses client-visits as its measure of activity. During December, the clinic budgeted for 2,500 client-visits, but its actual level of activity was 2,480 client-visits. The clinic has provided the following data concerning the formulas used in its budgeting and its actual results for December:

Data used in budgeting:

Actual results for December:

-The medical supplies in the flexible budget for December would be closest to:

Data used in budgeting:
 Actual results for December: 
-The medical supplies in the flexible budget for December would be closest to:
A)$23,696 
B)$22,650 
C)$23,318 
D)$22,476

Quizplus · Accepted Answer

Cost = Fixed cost per unit + Variable cost per unit F1F1F1S1F1F1F10 q
= $900 + $8.70 F1F1F1S1F1F1F10 2,480 = $22,476

Gotthelf Clinic Uses Client-Visits as Its Measure of Activity