Ruetz Clinic uses client-visits as its measure of activity.During November,the clinic budgeted for 2,500 client-visits,but its actual level of activity was 2,520 client-visits.The clinic has provided the following data concerning the formulas to be used in its budgeting: The occupancy expenses in the flexible budget for November would be closest to:

Question

Ruetz Clinic uses client-visits as its measure of activity.During November,the clinic budgeted for 2,500 client-visits,but its actual level of activity was 2,520 client-visits.The clinic has provided the following data concerning the formulas to be used in its budgeting:  The occupancy expenses in the flexible budget for November would be closest to:

Quizplus · Accepted Answer

Cost = Fixed cost + (Variable cost per unit × q)
= $8,200 + ($1.20 × 2,520)= $11,224

Ruetz Clinic Uses Client-Visits as Its Measure of Activity