Jiminian Clinic uses client-visits as its measure of activity. During March, the clinic budgeted for 3,700 client-visits, but its actual level of activity was 3,660 client-visits. The clinic has provided the following data concerning the formulas used in its budgeting and its actual results for March:

Data used in budgeting:

Actual results for March:

-The medical supplies in the flexible budget for March would be closest to:
A)$18,270
B)$18,607
C)$18,450
D)$19,016

Question

Jiminian Clinic uses client-visits as its measure of activity. During March, the clinic budgeted for 3,700 client-visits, but its actual level of activity was 3,660 client-visits. The clinic has provided the following data concerning the formulas used in its budgeting and its actual results for March:

Data used in budgeting:

Actual results for March:

-The medical supplies in the flexible budget for March would be closest to:

Data used in budgeting:

Actual results for March:

-The medical supplies in the flexible budget for March would be closest to:
A)$18,270 
B)$18,607 
C)$18,450 
D)$19,016

Quizplus · Accepted Answer

The medical supplies in the flexible budget for March would be closest to $18,270 because the flexible budget is based on the actual activity level for the month, and the actual activity level for March was 1,218 patient days. The budgeted amount for medical supplies is $15 per patient day, so the total budgeted amount for medical supplies for March is $15 x 1,218 = $18,270.

Jiminian Clinic Uses Client-Visits as Its Measure of Activity