Zelenka Clinic uses client-visits as its measure of activity.During June, the clinic budgeted for 2, 700 client-visits, but its actual level of activity was 2, 710 client-visits.The clinic has provided the following data concerning the formulas to be used in its budgeting for June: The medical supplies in the flexible budget for June would be closest to:
A)$17, 717
B)$17, 587
C)$18, 502
D)$18, 440

Question

Zelenka Clinic uses client-visits as its measure of activity.During June, the clinic budgeted for 2, 700 client-visits, but its actual level of activity was 2, 710 client-visits.The clinic has provided the following data concerning the formulas to be used in its budgeting for June:  The medical supplies in the flexible budget for June would be closest to:
A)$17, 717 
B)$17, 587 
C)$18, 502 
D)$18, 440

Quizplus · Accepted Answer

Cost = Fixed cost + (Variable cost per unit × q)
= $1, 700 + ($6.20 × 2, 710)= $18, 502

Zelenka Clinic Uses Client-Visits as Its Measure of Activity