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 2,300 client-visits, but its actual level of activity was 2,350
Fager Clinic uses client-visits as its measure of activity. During February, the clinic budgeted for 2,300 client-visits, but its actual level of activity was 2,350 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 | $ 69.20 |
Personnel expenses | $ 33,300 | $ 22.50 |
Medical supplies | 2,200 | 13.50 |
Occupancy expenses | 10,700 | 4.40 |
Administrative expenses | 6,000 | 1.10 |
Total expenses | $ 52,200 | $ 41.50 |
Actual results for February:
Revenue | $ 166,210 |
---|---|
Personnel expenses | $ 82,445 |
Medical supplies | $ 32,105 |
Occupancy expenses | $ 18,800 |
Administrative expenses | $ 7,015 |
The revenue variance for February would be closest to:
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