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Bartosiewicz Clinic uses client-visits as its measure of activity. During January, the clinic budgeted for 5,000 client-visits, but its actual level of activity was 5,020
Bartosiewicz Clinic uses client-visits as its measure of activity. During January, the clinic budgeted for 5,000 client-visits, but its actual level of activity was 5,020 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 | - | $ | 37.00 | ||
Personnel expenses | $ | 29,000 | $ | 13.00 | |
Medical supplies | 1,900 | 7.00 | |||
Occupancy expenses | 10,900 | 1.00 | |||
Administrative expenses | 6,500 | 0.10 | |||
Total expenses | $ | 48,300 | $ | 21.10 | |
Actual results for January:
Revenue | $ | 150,000 | |
Personnel expenses | $ | 70,060 | |
Medical supplies | $ | 20,220 | |
Occupancy expenses | $ | 14,070 | |
Administrative expenses | $ | 7,550 | |
The activity variance for net operating income in January would be closest to:
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