Miao Clinic uses client-visits as its measure of activity. During July, the clinic budgeted for 3,000 client-visits, but its actual level of activity was 2,980 client-visits. The clinic has provided the following data concerning the formulas used in its budgeting and its actual results for July:

Data used in budgeting:

Actual results for July:

-The occupancy expenses in the flexible budget for July would be closest to:
A)$10,907
B)$11,054
C)$11,180
D)$11,200

Question

Miao Clinic uses client-visits as its measure of activity. During July, the clinic budgeted for 3,000 client-visits, but its actual level of activity was 2,980 client-visits. The clinic has provided the following data concerning the formulas used in its budgeting and its actual results for July:

Data used in budgeting:

Actual results for July:

-The occupancy expenses in the flexible budget for July would be closest to:

Data used in budgeting:

Actual results for July:

-The occupancy expenses in the flexible budget for July would be closest to:
A)$10,907 
B)$11,054 
C)$11,180 
D)$11,200

Quizplus · Accepted Answer

The occupancy expenses in a flexible budget are typically calculated based on the actual level of activity or usage. Without specific details on the activity level or the cost behavior, the closest estimate provided is $11,180.

Miao Clinic Uses Client-Visits as Its Measure of Activity