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Bartosiewicz Clinic uses client-visits as its measure of activity. During January, the clinic budgeted for 3,900 client-visits, but its actual level of activity was 3,880
Bartosiewicz Clinic uses client-visits as its measure of activity. During January, the clinic budgeted for 3,900 client-visits, but its actual level of activity was 3,880 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 | $ 0 | $ 35.90 |
Personnel expenses | $ 27,900 | $ 11.90 |
Medical supplies | 1,900 | 5.90 |
Occupancy expenses | 10,900 | 1.00 |
Administrative expenses | 6,900 | 0.50 |
Total expenses | $ 47,600 | $ 19.30 |
Actual results for January:
Revenue | $ 124,740 |
---|---|
Personnel expenses | $ 71,010 |
Medical supplies | $ 22,300 |
Occupancy expenses | $ 14,690 |
Administrative expenses | $ 8,195 |
The activity variance for net operating income in January would be closest to:
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