Wesolick Clinic uses client-visits as its measure of activity. During August, the clinic budgeted for 2,900 client-visits, but its actual level of activity was 2,870 client-visits. The clinic has provided the following data concerning the formulas used in its budgeting and its actual results for August:

Data used in budgeting:

Actual results for August:

-The medical supplies in the flexible budget for August would be closest to:
A)$17,640
B)$17,048
C)$17,472
D)$16,697

Question

Wesolick Clinic uses client-visits as its measure of activity. During August, the clinic budgeted for 2,900 client-visits, but its actual level of activity was 2,870 client-visits. The clinic has provided the following data concerning the formulas used in its budgeting and its actual results for August:

Data used in budgeting:

Actual results for August:

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

Data used in budgeting:

Actual results for August:

-The medical supplies in the flexible budget for August would be closest to:
A)$17,640 
B)$17,048 
C)$17,472 
D)$16,697

Quizplus · Accepted Answer

To find the answer, we need to multiply the budgeted units (based on the actual at the time of budgeting) with the budgeted price for each item. From the table, we can see that the budgeted units for Medical Supplies in August is 2,160, and the budgeted price per unit is $8.08.

Multiplying the budgeted units with the budgeted price per unit, we get:

2,160 * $8.08 = $17,472

Therefore, the closest option is C) $17,472.

Wesolick Clinic Uses Client-Visits as Its Measure of Activity