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Gourley Clinic uses client-visits as its measure of activity. During August, the clinic budgeted for 3,550 client-visits, but its actual level of activity was 3,490
Gourley Clinic uses client-visits as its measure of activity. During August, the clinic budgeted for 3,550 client-visits, but its actual level of activity was 3,490 client-visits. The clinic has provided the following data concerning the formulas to be used in its budgeting: |
Fixed element per month | Variable element per client-visit | |
Revenue | $39.70 | |
Personnel expenses | $35,700 | $10.90 |
Medical supplies | 1,700 | 7.70 |
Occupancy expenses | 8,700 | 1.70 |
Administrative expenses | 5,700 | .80 |
Total expenses | $51,800 | $21.10 |
The activity variance for personnel expenses in August would be closest to:
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