Chirico Clinic uses client-visits as its measure of activity.During February,the clinic budgeted for 2,500 client-visits,but its actual level of activity was 2,550 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 occupancy expenses in the flexible budget for February would be closest to:

Question

Chirico Clinic uses client-visits as its measure of activity.During February,the clinic budgeted for 2,500 client-visits,but its actual level of activity was 2,550 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 occupancy expenses in the flexible budget for February would be closest to:

Quizplus · Accepted Answer

Cost = Fixed cost + (Variable cost per unit × q)
= $8,200 + ($2.50 × 2,550)= $14,575

Chirico Clinic Uses Client-Visits as Its Measure of Activity