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 2,400 client-visits, but its actual level of activity was 2,450
Fager Clinic uses client-visits as its measure of activity. During February, the clinic budgeted for 2,400 client-visits, but its actual level of activity was 2,450 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 | - | $ | 70.20 | ||
Personnel expenses | $ | 34,300 | $ | 23.50 | |
Medical supplies | 3,200 | 14.50 | |||
Occupancy expenses | 11,700 | 5.40 | |||
Administrative expenses | 7,000 | 2.10 | |||
Total expenses | $ | 56,200 | $ | 45.50 | |
Actual results for February:
Revenue | $ | 176,210 | |
Personnel expenses | $ | 84,445 | |
Medical supplies | $ | 34,105 | |
Occupancy expenses | $ | 20,800 | |
Administrative expenses | $ | 9,015 | |
The revenue variance for February would be closest to:
Multiple Choice
$4,220 U
$4,220 F
$7,730 U
$7,730 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