Jiminian Clinic Uses Client-Visits as Its Measure of Activity

question 256

Multiple Choice

Jiminian Clinic uses client-visits as its measure of activity.During March, the clinic budgeted for 3, 700 client-visits, but its actual level of activity was 3, 660 client-visits.The clinic has provided the following data concerning the formulas used in its budgeting and its actual results for March: Data used in budgeting: Actual results for March: The net operating income in the flexible budget for March would be closest to:

• A)$11, 654
• B)$13, 101
• C)$12, 330
• D)$13, 389

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Definitions:

Indirect Expenses

Costs that are not directly attributable to the production of goods or services, such as administrative and marketing expenses.