Federick Clinic uses client-visits as its measure of activity.During October,the clinic budgeted for 3,000 client-visits,but its actual level of activity was 3,040 client-visits.The clinic has provided the following data concerning the formulas used in its budgeting and its actual results for October: Data used in budgeting: Actual results for October: The occupancy expenses in the flexible budget for October would be closest to:

Question

Federick Clinic uses client-visits as its measure of activity.During October,the clinic budgeted for 3,000 client-visits,but its actual level of activity was 3,040 client-visits.The clinic has provided the following data concerning the formulas used in its budgeting and its actual results for October: Data used in budgeting:  Actual results for October:  The occupancy expenses in the flexible budget for October would be closest to:

Quizplus · Accepted Answer

Cost = Fixed cost + (Variable cost per unit × q)
= $12,100 + ($1.70 × 3,040)= $17,268

Federick Clinic Uses Client-Visits as Its Measure of Activity