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Fager Clinic uses client-visits as its measure of activity. During February, the clinic budgeted for 2,220 client-visits, but its actual level of activity was 2,270
Fager Clinic uses client-visits as its measure of activity. During February, the clinic budgeted for 2,220 client-visits, but its actual level of activity was 2,270 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 | $ 68.40 |
Personnel expenses | $ 32,500 | $ 21.70 |
Medical supplies | 1,400 | 12.70 |
Occupancy expenses | 9,900 | 3.60 |
Administrative expenses | 5,200 | .30 |
Total expenses | $ 49,000 | $ 38.30 |
Actual results for February:
Revenue | $ 158,210 |
---|---|
Personnel expenses | $ 80,845 |
Medical supplies | $ 30,505 |
Occupancy expenses | $ 17,200 |
Administrative expenses | $ 5,415 |
The flexible budget variance for February would be closest to:
|
$2,942 U
|
|
$2,942 F
|
|
$6,362 U
|
|
$6,362 F
|
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