Leist Clinic uses client-visits as its measure of activity. During September, the clinic budgeted for 2,200 client-visits, but its actual level of activity was 2,170 client-visits. The clinic has provided the following data concerning the formulas to be used in its budgeting:

-The medical supplies in the flexible budget for September would be closest to:
A) $22,080
B) $21,798
C) $21,907
D) $21,313

Question

Leist Clinic uses client-visits as its measure of activity. During September, the clinic budgeted for 2,200 client-visits, but its actual level of activity was 2,170 client-visits. The clinic has provided the following data concerning the formulas to be used in its budgeting:
 
-The medical supplies in the flexible budget for September would be closest to:
A) $22,080 
B) $21,798 
C) $21,907 
D) $21,313

Quizplus · Accepted Answer

Cost = Fixed cost + (Variable cost per unit × q)
= $1,400 + ($9.40 × 2,170) = $21,798

Leist Clinic Uses Client-Visits as Its Measure of Activity