Ruetz Clinic uses client-visits as its measure of activity.During November, the clinic budgeted for 2, 500 client-visits, but its actual level of activity was 2, 520 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 November would be closest to:
A)$22, 950
B)$22, 474
C)$23, 124
D)$22, 835

Question

Ruetz Clinic uses client-visits as its measure of activity.During November, the clinic budgeted for 2, 500 client-visits, but its actual level of activity was 2, 520 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 November would be closest to:
A)$22, 950 
B)$22, 474 
C)$23, 124 
D)$22, 835

Quizplus · Accepted Answer

Cost = Fixed cost + (Variable cost per unit × q)
= $1, 200 + ($8.70 × 2, 520)= $23, 124

Ruetz Clinic Uses Client-Visits as Its Measure of Activity