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Bartosiewicz Clinic uses client-visits as its measure of activity. During January, the clinic budgeted for 3,400 client-visits, but its actual level of activity was 3,380
Bartosiewicz Clinic uses client-visits as its measure of activity. During January, the clinic budgeted for 3,400 client-visits, but its actual level of activity was 3,380 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 | - | $ | 35.40 | ||
Personnel expenses | $ | 27,400 | $ | 11.40 | |
Medical supplies | 1,400 | 5.40 | |||
Occupancy expenses | 10,400 | 1.00 | |||
Administrative expenses | 6,400 | 0.50 | |||
Total expenses | $ | 45,600 | $ | 18.30 | |
Actual results for January:
Revenue | $ | 124,690 | |
Personnel expenses | $ | 72,040 | |
Medical supplies | $ | 22,708 | |
Occupancy expenses | $ | 14,640 | |
Administrative expenses | $ | 8,145 | |
The activity variance for net operating income in January would be closest to:
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