Parisi Clinic uses client-visits as its measure of activity. During March, the clinic budgeted for 2,300 client-visits, but its actual level of activity was 2,350 client-visits. The clinic has provided the following data concerning the formulas to be used in its budgeting:
-The medical supplies in the flexible budget for March would be closest to:
A)$19,149
B)$19,395
C)$19,990
D)$19,010

Question

Parisi Clinic uses client-visits as its measure of activity. During March, the clinic budgeted for 2,300 client-visits, but its actual level of activity was 2,350 client-visits. The clinic has provided the following data concerning the formulas to be used in its budgeting: 
-The medical supplies in the flexible budget for March would be closest to:
A)$19,149 
B)$19,395 
C)$19,990 
D)$19,010

Quizplus · Accepted Answer

Cost = Fixed cost per unit + Variable cost per unit F1F1F1S1F1F1F10 q
= $1,300 + $7.70 F1F1F1S1F1F1F10 2,350 = $19,395

Parisi Clinic Uses Client-Visits as Its Measure of Activity