Lantagne Clinic Uses Client-Visits as Its Measure of Activity

question 373

Multiple Choice

Lantagne Clinic uses client-visits as its measure of activity. During May, the clinic budgeted for 3,800 client-visits, but its actual level of activity was 3,820 client-visits. The clinic has provided the following data concerning the formulas used in its budgeting and its actual results for May: Data used in budgeting: Actual results for May: The net operating income in the flexible budget for May would be closest to:

• A)$16,668
• B)$17,426
• C)$16,844
• D)$17,040

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