During October, Moceri Clinic budgeted for 3,000 patient-visits, but its actual level of activity was 3,500 patient-visits. The clinic uses the following revenue and cost formulas in its budgeting, where q is the number of patient-visits:
Revenue: $41.80q
Personnel expenses: $30,900 + $13.70q
Medical supplies: $700 + $7.80q
Occupancy expenses: $8,900 + $1.50q
Administrative expenses: $3,600 + $0.20q
Required:
Prepare the clinic's flexible budget for October based on the actual level of activity for the month.

Question

Quizplus · Accepted Answer

The Answer of During October, Moceri Clinic budgeted for 3,000 patient-visits, but its actual level of activity was 3,500 patient-visits. The clinic uses the following revenue and cost formulas in its budgeting, where q is the number of patient-visits:
Revenue: $41.80q
Personnel expenses: $30,900 + $13.70q
Medical supplies: $700 + $7.80q
Occupancy expenses: $8,900 + $1.50q
Administrative expenses: $3,600 + $0.20q
Required:
Prepare the clinic's flexible budget for October based on the actual level of activity for the month.

During October, Moceri Clinic Budgeted for 3,000 Patient-Visits, but Its