Ibsen Clinic Uses Client-Visits as Its Measure of Activity

question 55

Multiple Choice

Ibsen Clinic uses client-visits as its measure of activity. During December, the clinic budgeted for 3,300 client-visits, but its actual level of activity was 3,340 client-visits. The clinic has provided the following data concerning the formulas used in its budgeting and its actual results for December:Data used in budgeting: Actual results for December:
The occupancy expenses in the flexible budget for December would be closest to:

• A) $15,565
• B) $16,114
• C) $15,945
• D) $16,030

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Definitions:

1,2-Ethanediol

A chemical compound commonly known as ethylene glycol, used as an antifreeze and precursor to polymers.

Propanoic Acid

A colorless, oily liquid with a pungent odor, used in the manufacture of various chemicals, including as a preservative.

Osmosis

The movement of water molecules through a semi-permeable membrane from a region of low solute concentration to a region of high solute concentration to equalize the concentrations on both sides of the membrane.

Semipermeable Membrane

A type of membrane that allows certain molecules or ions to pass through it by diffusion and occasionally specialized "facilitated diffusion," while blocking others.