Caballes Clinic Uses Client-Visits as Its Measure of Activity

question 241

Multiple Choice

Caballes Clinic uses client-visits as its measure of activity. During November, the clinic budgeted for 3,100 client-visits, but its actual level of activity was 3,070 client-visits. The clinic has provided the following data concerning the formulas used in its budgeting and its actual results for November:

Data used in budgeting:
Actual results for November:
-The net operating income in the flexible budget for November would be closest to:

• A)$20,172
• B)$13,870
• C)$13,249
• D)$20,568

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Definitions:

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