Question
Bartosiewicz Clinic uses client-visits as its measure of activity. During January, the clinic budgeted for 4,500 client-visits, but its actual level of activity was 4,480
Bartosiewicz Clinic uses client-visits as its measure of activity. During January, the clinic budgeted for 4,500 client-visits, but its actual level of activity was 4,480 client-visits. The clinic has provided the following data concerning the formulas used in its budgeting and its actual results for January: Data used in budgeting: Fixed element per month Variable element per client-visit Revenue - $ 36.50 Personnel expenses $ 28,500 $ 12.50 Medical supplies 1,400 6.50 Occupancy expenses 10,400 1.00 Administrative expenses 7,500 0.10 Total expenses $ 47,800 $ 20.10 Actual results for January: Revenue $ 129,000 Personnel expenses $ 70,010 Medical supplies $ 21,010 Occupancy expenses $ 13,180 Administrative expenses $ 7,430 The activity variance for net operating income in January would be closest to: Multiple Choice $328 F $328 U $8,630 U $8,630 F
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