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Fager Clinic uses client-visits as its measure of activity. During February, the clinic budgeted for 2,200 client-visits, but its actual level of activity was 2,250
Fager Clinic uses client-visits as its measure of activity. During February, the clinic budgeted for 2,200 client-visits, but its actual level of activity was 2,250 client-visits. The clinic has provided the following data concerning the formulas used in its budgeting and its actual results for February:
Data used in budgeting:
Fixed element per month | Variable element per client-visit | |
---|---|---|
Revenue | $ 0 | $ 68.20 |
Personnel expenses | $ 32,300 | $ 21.50 |
Medical supplies | 1,200 | 12.50 |
Occupancy expenses | 9,700 | 3.40 |
Administrative expenses | 5,000 | 0.10 |
Total expenses | $ 48,200 | $ 37.50 |
Actual results for February:
Revenue | $ 156,210 |
---|---|
Personnel expenses | $ 80,445 |
Medical supplies | $ 30,105 |
Occupancy expenses | $ 16,800 |
Administrative expenses | $ 5,015 |
The revenue variance for February would be closest to:
Multiple Choice
$2,760 U
$2,760 F
$6,170 U
$6,170 F
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