Answered step by step
Verified Expert Solution
Question
1 Approved Answer
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 activity variance for personnel expenses in February would be closest to:
a) $845 F
b) $845 U
c) $1,075 U
d) $1,075 F
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