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
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: Fixed element per month Variable element per client-visit Revenue...... - $47.80 Peronnel expenses.... $32,300 $15.5 medical supplies.... 1,700 6.20 Occupancy expenses.... 10,800 1.40 Administrative expense.... 5,400 0.10 Total expenses..... $50,200 $23.30 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
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