Bartosiewicz Clinic uses client-visits as its measure of activity. During January, the clinic budgeted for 3,500 client-visits, but its actual level of activity was 3,490 client-visits. The clinic has provided the following data concerning the formulas used in its budgeting and its actual results for January: Data used in budgeting:
Actual results for January:
The net operating income in the flexible budget for January would be closest to:
A) $6,364
B) $13,500
C) $13,312
D) $6,400

Question

Bartosiewicz Clinic uses client-visits as its measure of activity. During January, the clinic budgeted for 3,500 client-visits, but its actual level of activity was 3,490 client-visits. The clinic has provided the following data concerning the formulas used in its budgeting and its actual results for January: Data used in budgeting:
 Actual results for January:
 The net operating income in the flexible budget for January would be closest to:
A) $6,364 
B) $13,500 
C) $13,312 
D) $6,400

Quizplus · Accepted Answer

11eacbfc_c58c_885b_8ffe_698cc25b6200_TB7552_00 Net operating income = ($18.80 × 3,490) − $52,300 = $13,312

Bartosiewicz Clinic Uses Client-Visits as Its Measure of Activity