Duprey Clinic uses client-visits as its measure of activity. During January, the clinic budgeted for 2,200 client-visits, but its actual level of activity was 2,150 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		-		$	58.40
Personnel expenses	$	33,500		$	18.00
Medical supplies		1,000			9.90
Occupancy expenses		9,300			2.20
Administrative expenses		5,300			0.40
Total expenses	$	49,100		$	30.50

Actual results for January:

Revenue	$	127,950
Personnel expenses	$	69,720
Medical supplies	$	23,125
Occupancy expenses	$	14,290
Administrative expenses	$	5,930

The net operating income in the planning budget for January would be closest to:

Garrison 16e Rechecks 2018-06-07

Multiple Choice

• $12,280

• $14,547

• $15,231

• $10,885

Which of the following may appear on a flexible budget performance report?

Multiple Choice

• A favorable revenue variance.

• All of the above may appear on a flexible budget performance report.

• An unfavorable spending variance.

• An unfavorable activity variance.