During August,Cardenas Clinic budgeted for 3,900 patient-visits,but its actual level of activity was 3,800 patient-visits.The clinic uses the following revenue and cost formulas in its budgeting,where q is the number of patient-visits:

Revenue: $27.80q
Personnel expenses: $25,100 + $7.80q
Medical supplies: $1,100 + $5.60q
Occupancy expenses: $7,900 + $1.20q
Administrative expenses: $3,200 + $0.10q

Required:
Prepare the clinic's flexible budget for August based on the actual level of activity for the month.

Question

During August,Cardenas Clinic budgeted for 3,900 patient-visits,but its actual level of activity was 3,800 patient-visits.The clinic uses the following revenue and cost formulas in its budgeting,where q is the number of patient-visits:

Revenue: $27.80q
Personnel expenses: $25,100 + $7.80q
Medical supplies: $1,100 + $5.60q
Occupancy expenses: $7,900 + $1.20q
Administrative expenses: $3,200 + $0.10q

Required:
Prepare the clinic's flexible budget for August based on the actual level of activity for the month.

Quizplus · Accepted Answer

The Answer of During August,Cardenas Clinic budgeted for 3,900 patient-visits,but its actual level of activity was 3,800 patient-visits.The clinic uses the following revenue and cost formulas in its budgeting,where q is the number of patient-visits:

Revenue: $27.80q
Personnel expenses: $25,100 + $7.80q
Medical supplies: $1,100 + $5.60q
Occupancy expenses: $7,900 + $1.20q
Administrative expenses: $3,200 + $0.10q

Required:
Prepare the clinic's flexible budget for August based on the actual level of activity for the month.

During August,Cardenas Clinic Budgeted for 3,900 Patient-Visits,but Its Actual Level