Question
Bartosiewicz Clinic uses client-visits as its measure of activity. During January, the clinic budgeted for 4,800 client-visits, but its actual level of activity was 4,880
Bartosiewicz Clinic uses client-visits as its measure of activity. During January, the clinic budgeted for 4,800 client-visits, but its actual level of activity was 4,880 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 - $ 36.90 Personnel expenses $ 28,900 $ 12.90 Medical supplies 1,800 6.90 Occupancy expenses 10,800 1.00 Administrative expenses 7,900 0.50 Total expenses $ 49,400 $ 21.30 Actual results for January: Revenue $ 134,000 Personnel expenses $ 70,050 Medical supplies $ 21,018 Occupancy expenses $ 14,260 Administrative expenses $ 8,110 The activity variance for net operating income in January would be closest to: Multiple Choice $1,248 F $622 F $312 U $416 U
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