Doubleday Clinic uses client-visits as its measure of activity. During June, the clinic budgeted for 3,200 client-visits, but its actual level of activity was 3,180 client-visits. The clinic has provided the following data concerning the formulas to be used in its budgeting for June:
-The administrative expenses in the planning budget for June would be closest to:
A)$3,429
B)$3,408
C)$3,520
D)$3,518

Question

Doubleday Clinic uses client-visits as its measure of activity. During June, the clinic budgeted for 3,200 client-visits, but its actual level of activity was 3,180 client-visits. The clinic has provided the following data concerning the formulas to be used in its budgeting for June: 
-The administrative expenses in the planning budget for June would be closest to:
A)$3,429 
B)$3,408 
C)$3,520 
D)$3,518

Quizplus · Accepted Answer

Cost = Fixed cost per unit + Variable cost per unit F1F1F1S1F1F1F10 q
= $3,200 + $0.10 F1F1F1S1F1F1F10 3,200 = $3,520

Doubleday Clinic Uses Client-Visits as Its Measure of Activity