Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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:

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Accounting questions