Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Bartosiewicz Clinic uses client-visits as its measure of activity. During January, the clinic budgeted for 4,200 client-visits, but its actual level of activity was 4,180
Bartosiewicz Clinic uses client-visits as its measure of activity. During January, the clinic budgeted for 4,200 client-visits, but its actual level of activity was 4,180 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 | - | $ | 36.20 | ||
Personnel expenses | $ | 28,200 | $ | 12.20 | |
Medical supplies | 1,100 | 6.20 | |||
Occupancy expenses | 10,100 | 1.00 | |||
Administrative expenses | 7,200 | 0.30 | |||
Total expenses | $ | 46,600 | $ | 19.70 | |
Actual results for January:
Revenue | $ | 126,350 | |
Personnel expenses | $ | 70,120 | |
Medical supplies | $ | 21,112 | |
Occupancy expenses | $ | 14,110 | |
Administrative expenses | $ | 7,870 | |
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
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started